What Mortgage advises against short-term fixed-rate arrangements

Date:Monday 6th September 2010
Author: Max Freedman

Consumers should opt against taking out short-term fixed-rate arrangements in the current lending climate, according to What Mortgage.

Editor at the magazine Ben Wilkie claimed that most commentators do not believe the base rate is likely to be increased by much this year, if it is even pushed up at all.

He explained that many experts are of the opinion that the UK will enjoy low interest rates for a long time, which he observed makes short-term fixed-rate arrangements less of a good deal currently.

Mr Wilkie said that the current housing market situation is good news for many buyers, as lower prices mean smaller mortgages.

"The only people who really struggle are people who need to remortgage and are quite tight in terms of money," noted the What Mortgage representative.

His comments follow a statement from Nationwide's chief economist Martin Gahbauer, who noted that house prices fell for two consecutive months in July and August of this year.