Fixed-rate mortgages more attractive?

Posted: 12 Aug 2010 09:35:58 GMT

Fixed-rate mortgages are now more attractive to borrowers than they have ever been, one expert has indicated.

Senior technical manager at John Charcol Ray Boulger said the cost of such loans has dropped in recent months.

"Although I think trackers generally still offer better value, you can certainly make out a much better case for buying a fixed-rate now because the gap between trackers and fixed-rates has narrowed," he added.

Mr Boulger noted they are now better value, especially five-year fixed-rate deals.

He explained the cost of fixed-rates has fallen and lenders have increased tracker rates.

The specialist's comments follow the release of figures from the Council of Mortgage Lenders, which revealed 48 per cent of new borrowers took out a fixed-rate policy in June and this is the highest proportion so far this year.

In June, 52,000 loans worth approximately £7.6 billion were granted - a volume increase of 19 per cent from May 2010.
 

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