Seek advice on fixed-rate mortgages, expert says

04-Mar-2009

Prospective borrowers of first-time buyer mortgages should seek advice before agreeing to a long-term fixed-rate deal, it has been suggested.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders, said: "They need to understand the nature of the commitment that they are taking on and, if they are not clear, what the best option is for them."

His comments come as the Bank of England's monetary policy committee is set to vote on interest rates tomorrow.

The base rate has fallen substantially since the impact of the downturn and was cut to one per cent after a reduction of 50 basis points last month.

However, some prospective first-time buyers struggled to access mortgage finance as lenders have introduced stricter borrowing criteria since the onset of the credit crunch.

Louise Cuming from price comparison website Moneysupermaket suggested this week that moving back home to live with parents is one of the most effective ways to save up for a deposit on a first property.

FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.

Parents stepping in to help first-time buyersSome lenders 'loosening their criteria for FTBs'Rate cuts 'have had impact on mortgage finance'

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