8 May

Mortgage holders offered new advice

Mortgage holders offered new advice

New advice on mortgages has been issued following yesterday's announcement that the interest rate will remain at 0.5 per cent.

Ray Boulger, a financial expert from mortgage broker John Charcol, said that homeowners with variable-rate home loans should switch products to avoid having a rapid rise in repayment levels in the future.

The base rate is expected to remain at 0.5 per cent for the rest of the year, but it will inevitably start escalating once the economy shows signs of improvement in the future.

People with interest-only loans should pay particular attention to the advice, according to Mr Boulger.

He remarked: "Switching to a fixed rate for at least five years will be the best way for most people to buy protection from increased rates."

Anyone currently considering their mortgage options should make sure they seek advice before making a final decision, the expert added.

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