People now choosing fixed-rate mortgages

26/03/2007

Figures have stated that people are now choosing fixed-rate mortgages as a loan basis. Motley Fool the financial website, have predicted on estimating over interest rate increment and peoples choice to go ahead with the fixed rate mortgage as repayments are supposed to be met.

Fool has stated that some of the borrowers opting for fixed-rate offers increased nearly over 80, coming the common interest rate increase in January period. The interest rates have tripled since last year during the following months, January, August and November.

Also, people who are switching their home loan via a remortgage deal may also be thinking to fix their mortgage rate. David Kuo, spoke further: "Fixed-rate mortgages are the best way for homeowners to insulate themselves from rate rises. It is ideal for people who need to know where they stand financially from pay packet to pay packet. Currently, interest rates are expected to rise 0.25% within the next two months and a further 0.25% six months after that."

Mr Kuo added: "There is, of course, no guarantee that base rates will rise to 5.75% before the end of 2007. However, borrowers should resist the temptation of second-guessing the direction of interest rates when their homes are at stake."

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