Consumers 'should secure fixed-rate mortgages'

Date:Wednesday 20th May 2009
Author: Max Freedman

Consumers should seek fixed-rate mortgages now before the base rate of interest begins to climb, an expert has advised.

Commenting on the issue, Sharon Bratley, a chartered financial planner at, said that interest rates have remained the same for two consecutive months, meaning they may currently be as low as they will get.

She claimed that the next step will be for interest rates to begin to climb.

Ms Bratley commented: "When this increase will happen remains to be seen. It could be next month or next year, but the fact is that interest rates are going to rise, which might be enough for mortgage lenders to start pushing their interest rates up."

Although consumers on tracker mortgages are currently experiencing cheap repayments, they may soon be paying significantly" more than their counterparts on fixed-rate products when interest rates increase, she added.

Currently, the UK's base rate of interest stands at 0.5 per cent.