4 Feb

Mortgage borrowers urged to act soon

Mortgage borrowers urged to act soon

Borrowers have been advised not to wait too long before securing a fixed-rate mortgage.

Unbiased.co.uk has found that many homeowners are planning to hold off fixing their payments until next month, as they expect interest rates to continue falling.

Research by the advice website showed that most people expect the base rate to reach its lowest point in March, prompting the decision to wait.

But chief executive David Elms noted that general rules should not be followed in the current climate, as further falls may not come.

"With rates so low and further cuts likely to have been priced in by lenders, borrowers need to ensure they don't lose out by holding out too long," he said.

According to Unbiased.co.uk, the lowest three-year, fixed-rate deal is currently just under four per cent, but a third of borrowers are waiting for it to drop to three per cent.

Meanwhile, this week Capital Economics called for the government to take further steps to increase mortgage lending.

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