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Homeowners Want 25-Year Fixed Rate Mortgages
In his Budget earlier in the year, the Chancellor, Alistair Darling MP, said he wanted to encourage the growth of 25 year fixed rate mortgages.
The majority of home owners in the UK currently opt for short-term fixed rates of two or three years which can leave them exposed to interest rate rises when their mortgage deal ends.
A recent survey confirmed that the Chancellor's idea was a popular one with 37% of respondents would opt for a 25 year fixed rate mortgage.
Commenting on the survey, Tony Rice of TMP Mortgage Zone said: "In an economy where the base rate keeps dropping, people who have opted not to fix the interest rate on their mortgage are better off whilst those on a fixed rate do not benefit. However, when rates go up, those same people find themselves paying more and all those people who fixed the interest rates on their mortgages are unaffected."
"Ultimately, it comes down to personal choice and a client's attitude to risk. Some people like to know exactly what they will be paying for the next two, three, five, ten or even 25 years. Others prefer short term fixed rates, or tracker rate mortgages in order to have a greater degree of flexibility and be in a position to benefit from possible interest rate changes."
As a specialist mortgage broker providing a whole of market service, TMP Mortgage Zone can help you find the right mortgage deal from hundreds of lenders.
[ 11-06-2008 ]
