According to Mortgageforce's sales figures, borrowers are becoming less interested in fixed rates every month by about 9pc of the market share- they accounted for only 29 per cent of all purchases and remortgages in November.
Katie Tucker, technical manager for Mortgageforce says: "The choice between a fixed rate and a variable rate is more personal now than ever; the advantage in the price difference is cancelled out by the likelihood of Bank rate being increased in the next two years. "This means borrowers should firstly take whole of market advice to ensure the best selection is available to them, and secondly, choose their rate based on their own personal ability to afford potential increases in the rate in the next few years. "A tracker is not for you if you suspect you're not disciplined enough to overpay in the short term while your contracted payments are low, or if you would struggle if your monthly payment increased by about another quarter in a year's time." (assuming a one per cent increase on a current 4 per cent rate on an interest-only mortgage).
Date: 16th, December, 2009
Author: Ben Wilkie
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