Fixing mortgages is 'best option'
The base rate will start to increase soon and mortgage borrowers must fix any deals now, according to moneysupermarket.com.
moneysupermarket.com has warned mortgage borrowers that rising rates in the future could mean that now is the best time to fix interest on their deals.While the Bank of England base rate has seen a decline over the past two years, new market figures from the website show that lenders may be set to increase the interest on their mortgage products.
According to the company, average interest on a two-year fixed rate mortgage has been dropping since August 2007, but last week saw an increase to 3.62 per cent from 3.56 per cent at the beginning of June.
Louise Cuming, head of mortgages at moneysupermarket.com, said: "For a while now many people have been waiting to pounce once we reach the bottom of the mortgage market, it seems that time has come."
Recent figures from mortgage lender Abbey showed that interest in variable rate products is down by 50 per cent from the beginning of the year as more people prepare to fix their deals.
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