News

09/03/2011 11:32:28

Financial planning 'supported by fixed-rate mortgages'

Financial planning might be made easier if Britons choose a fixed-rate mortgage, as an expert has suggested they provide "certainty, stability and help with budgeting".

Martyn Dyson, mortgage specialist at Nationwide, states: "People could actually have a pleasant surprise if they shop around, as they may be able to save some money on their mortgage."

Those worried about a possible base rate rise and the effect it will have on their financial planning might favour the unchanging house purchase loan package - and advice from a qualified adviser could help inform this decision.

Earlier this week, Moneyfacts.co.uk revealed tracker mortgage rates have dropped to their lowest ever level, suggesting lenders believe interest rates will rise in the foreseeable future.

The average two-year rate on the loans has sunk to 3.4 per cent, which is the lowest recorded since monitoring began in 1988 and indicates the degree to which personal finance providers are tailoring their products to the economic downturn.