FTBs Urged To Go For Fixed-Rate Mortgages

14-Jul-2006

First-time buyers (FTBs) are being urged by one expert to take out fixed-rate mortgages while interest rates remain relatively low.

Cath Hearnden of My Mortgage Direct says that mortgages are currently at an affordable level for people looking to get onto the first rung of the property ladder and they should take advantage of this as soon as they can.

"We would strongly advise first-timers to opt for a fixed rate in order to take the uncertainty of rate rises out of the picture. After all, that's exactly what they are for," she comments.

The comments come on the back of figures suggesting that homebuyers in general are increasingly favouring fixed-rate mortgages over tracker products.

My Mortgage Direct says that the number of fixed-rate deals being sold overtook tracker mortgages between March and June this year.

Ms Hearnden states that buyers "are wisely deciding that it's safer to cut their losses and opt for a fixed rate now, rather than risk missing the best deals when the inevitable happens".

With property investment firm Assetz predicting a steadying of house prices for the summer, aspiring homeowners could doubly benefit from both cheaper mortgages and low house prices over the next few months.

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