John Charcol mortgages urges consumers not to fix for two years

Date:Tuesday 7th September 2010
Author: Susanna Kavka

An expert from John Charcol mortgages has told consumers that two-year fixed-rate arrangements are likely to be poor value currently.

Ray Boulger explained to that there are two potential outcomes being discussed by commentators and neither one favours a two-year fix.

He claimed the possibilities being mooted are either that the bank base rate will stay low and rise slowly over the next five years, or for it to rise sharply to about eight per cent by the end of 2012.

"I suggest those trying to decide between a fixed or variable rate should look at fixed rates for at least five years and both trackers and discount rates," observed Mr Boulger.

The John Charcol mortgages expert also pointed out that early repayment charges should be a consideration for those planning to lock in for five years or more.

Last month, the same spokesperson stated the base rate is unlikely to rise before the end of 2010.