Experts are warning that not all fixed rate mortgages are safe for consumers and that it is best to research options fully before jumping in. Although fixed rate mortgages are safer over the long term, today’s rates are quite high. Consumers are seeking security in fixed rate mortgages and many are willing to get stuck with a high rate now, but may regret it in the future when rates come back down. This has left many in a quandary as to what they should do with their home loans.
“In the current environment of uncertainty, it’s natural to look to fixed rate deals to provide security, but our data clearly shows that it’s imperative to look at the whole product range when looking for a new deal,” said Louise Cuming, head of mortgages at MoneySupermarket.
“This is especially so if you can stomach a little leeway on payments.”
“Trackers have been avoided like the plague in recent months due to interest rates looking unstable yet all the signs are that rates will be kept on hold for the time being, with the next movement potentially being a reduction,” added Ms Cuming.
Related reading: Home Mortgage
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