11 Jun

Homeowners 'unsure over mortgage options'

Homeowners 'unsure over mortgage options'

British homeowners are currently facing a dilemma when it comes to choosing a mortgage, HSBC has suggested.

The bank made the observation after many customers chose an option to split their mortgage in such a way that part is fixed, while the rest is subject to a variable rate.

Of those who took up the offer at 70 per cent loan-to-value, the majority chose a 50-50 divide, leading the bank to state consumers are "equally torn" between a deal that tracks the Bank of England base rate and one that has guaranteed levels of interest payments.

"The ongoing debate around when interest rates are likely rise as well as conflicting predictions on house prices is adding to the confusion for homeowner," said head of mortgages at HSBC Martijn van der Heijden.

Announcing plans for the Split Loan Mortgage in April, the expert suggested it is "impossible to predict" when the Bank of England will raise rates.

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