7 Sep

Homebuyers 'should look ahead for mortgage rates'

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.ADNFCR-1222-ID-800055426-ADNFCR

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