Borrowers advised to wait before fixing
Homeowners hoping to remortgage to a new fixed-rate deal should wait a few weeks before acting, a personal finance expert has recommended.
The advice came from Denise Harvey of price comparison website Moneyfacts.co.uk, who explained that although the cost of fixed-rate mortgages has started to drop, conditions in the financial markets suggest there is the potential for them to become much cheaper.
She said: "The market still has room to fall further, so you may be wise to hold back from fixing in too early."
However, she had very different advice for those who hope to take advantage of the anticipated fall in interest rates by remortgaging to a tracker.
A number of lenders have started to act to protect their profits by raising the rates available to new tracker mortgage customers, explained Ms Harvey, so borrowers should act now if they want to secure a cheap deal.
The Bank of England's monetary policy committee is scheduled to meet next week to discuss whether a cut in the base rate, which would result in a fall in monthly repayments on tracker mortgages, is necessary.
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