What Mortgage says fixed rates currently high

Date:Wednesday 1st December 2010
Author: Susanna Kavka

Fixed-rate home finance deals currently feature relatively high interest rates, according to an expert from What Mortgage.

Ben Wilkie, editor of the publication, suggested this is a result of the market not being as competitive as it has been in the past.

He pointed out that there is a large difference between the base rate and the average fixed-rate levy and claimed there are many people who think interest levels will not increase much even if the base rate does go up.

"I would imagine that when rates do start to rise, they are not suddenly going to shoot up so people will have a month to work out what is best for them," said Mr Wilkie.

In his opinion, there are a lot of consumers who are waiting to see what happens with the base rate before deciding whether to opt for a fixed or variable-rate mortgage.

Recent research from Moneyfacts showed the average rate on five-year fixed arrangement has fallen by 0.86 per cent over the past year to 5.29 per cent.