Fixed-rates ’set to fall’
The cost of fixed-rate mortgages is likely to fall still further over the next few months, a market expert predicted today.
Nationwide recently advised the 250,000 borrowers with two-year fixed-rate deals scheduled to expire before the end of 2007 to remortgage at the earliest possible opportunity.
It suggested taking out another fixed-rate mortgage would be the best way to obtain payment certainty and minimise the increase in monthly repayments caused by the interest rate rises of recent times.
However, Katie Tucker of independent mortgage adviser John Charcol believes that anyone thinking about switching to a fixed-rate deal should refrain from making a final decision for several months, if they can afford to.
Some lenders have reduced rates on their fixed-rate products in recent weeks, but market conditions suggest they are not yet at their lowest point, she explained.
"In a few months we should see fixed rates cut by many more lenders so if borrowers are looking for the security of a fixed rate … they should try and hold on a bit longer if they can," added Ms Tucker.
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