7
Sep
Homebuyers 'should look ahead for mortgage rates'
Homebuyers have been advised to look ahead to determine which type
of mortgage they take out when purchasing a house for sale in the
UK.
According to Ray Boulger from mortgage adviser John Charcol,
potential homeowners "should look at fixed-rates for at least five
years and both trackers and discount rates".
He added that for a five-year fixed-rate mortgage to be cheaper
than a variable rate, the Bank of England's base rate would have to
be more than 2.5 per cent on average over the next five
years.
His comments come before the result is announced whether to
increase the base rate or keep it at 0.5 per cent.
The Monetary Policy Committee will meet tomorrow (September 8th
2010) to make its decision.
Mr Boulger added that picking loans which offer flexibility would
provide homebuyers with the greatest option.
Chartered financial planner at Informed Choice Martin Bamford gave
homeowners with a variable rate loan encouragement after he
predicted that the base rate is likely to remain the same until the
end of 2010.