Is Now the Right Time to Opt for a Fixed Rate Mortgage?
For Immediate Release, Monday 14th June, 2010: Moneyexpert.com review the fixed rate mortgage market to see if now is the right time for homeowners to switch their mortgage away from their lender’s SVR rate. • Fixed rate mortgage APR at 7 year low • Attractive long-term fixed rate deals available • SVR rates continue to rise regardless of whether the Bank of England increases base rate • Good fixed-rate deals unlikely to remain on offer if interest rates rise Economists are confused about when, or even if, the Bank of England will raise interest rates in 2010. But whether interest rates begin to rise in the coming months or not, now could be the best time to move away from a standard SVR rate. Pierre Williams, Head of Research at www.moneyexpert.com explains: “The roller-coaster that is the current British and global economy really does make predicting which way interest rates will go extremely difficult for the remainder of 2010. “While homeowners on SVRs will have benefitted over the last two years, interest rates can go up as quickly as they went down, putting considerable strain on already tight family finances. For that reason many homeowners may prefer the added security a fixed rate mortgage brings". Moneyexpert.com, which offers online comparison services of fixed, variable and discounted Mortgage Rates, has found that fixed rate mortgages have come down in price in recent months and are now at their cheapest level in 7 years, with some attractive long term fixed rate deals on offer. Research published recently shows that while no lender has cut its SVR for nearly a year, 16 have increased their SVR since Bank Rate fell to 0.5% 15 months ago. Continues Pierre Williams: “Five-year fixed rate mortgages are at a 7-year low, starting at around 4%; while Yorkshire Building Society has just launched an attractive 10-year fixed-rate mortgage at 4.99%. When you consider that over the last ten years the average mortgage standard variable rate across the market has been 6.2%, this is extremely good for a fixed rate deal. However, these fixed rate deals are unlikely to still be on offer if interest rates begin to rise in the second half of the year. "HSBC’s Split Loan Mortgage product, designed to help those who worry over interest rate movements, allows customers to fix a proportion of their mortgage while the rest of the loan remains variable. This might be a good option for anyone not wanting to commit for the long term, but who is also looking for some security against the possibility of rapidly rising interest rates. “As with any financial product we urge anyone thinking about taking out a fixed rate mortgage to compare prices between lenders to ensure they are getting the best rates and the best deal for their individual circumstances.” Notes: For more information contact Dale Lovell on 01753 859 588 / 0779 1414 681 or email: dlovell@searchnewsmedia.co.uk. About Moneyexpert.com: MoneyExpert has been helping people find the best finance deal for over 20 years. We're proud of the impartial service we offer. We allow you to compare all products in the marketplace at the click of a mouse to help you find what's best for your money. Every month we help hundreds of thousands of people to find the right product for them. Please feel free to talk to us or get in touch via our website - we're always eager to help. Will Interest Rates Rise in 2010? A round-up of industry quotes on the subject: http://www.moneyexpert.com/financial-news/none/will-interest-rates-rise-in-2010/article.aspx?articleid=19830558&producttypeid=1 Press Release by: www.searchnewsmedia.co.uk
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