Buyers 'should not gamble' with interest rates

24-Nov-2006

First time buyers and repeat purchasers should not gamble with the prospect of future interest rate rises, experts suggest.

According to experts at the Motley Fool - a financial comparison website - despite the lack of unanimity at the last monetary policy committee meeting, first time buyers and other property purchasers should not bank on there being no further rate rises.

"Homeowners should not be complacent, nor should they try to second-guess the direction of interest rates when their homes are at stake," said David Kuo, head of personal finance at the Motley Fool.

"There is still an 80 per cent chance that interest rates may increase to 5.5 per cent by the end of 2007. That will mean borrowers need to find an extra £83 a month," he added.

Experts at the Motley Fool are advising borrowers to take out a fixed-rate mortgage in order to protect against any future interest rate rises.

The Motley Fool offers comparisons on a number of financial products, including mortgages, credit cards and loans.

To find out more about all the different and creative and innovative mortgages designed specifically for first time buyers click here.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

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