Homeowners 'should consider fixed-rate mortgage deals'

Date:Friday 17th April 2009
Author: Susanna Kavka

Homeowners in the UK should consider taking advantage of the low interest rates currently available on some fixed-rate mortgages.

This is according to Catherine Hearnden, director at MyMortgageDirect, who said that people should seek products at rates they are happy to pay for the next three to five years.

She made her comments in response to an announcement by Barclays this week that Woolwich is withdrawing one of its four-year fixed-rate deals.

The Woolwich's four-year deal had been available at a rate of 3.99 per cent.

Ms Hearnden said that, despite the loss of this product, there are still low mortgage rates available on a fixed-term basis.

The expert stated: "Don't go rushing in to a rate just because you feel under pressure, but at the same time, I would encourage people to go for fixed rates."

She went on to claim that a rate which is lower than five per cent is a "good rate".