8
Nov
Mortgage customers advised to get Switch & Fix deals
Future mortgage customers have been advised to opt for a Switch
& Fix deal when purchasing houses for sale in the UK.
Last week, the Bank of England's Monetary Policy Committee revealed
that the base rate will remain at 0.5 per cent.
This low interest rate is likely to have tempted a lot of
homebuyers to take out a tracker mortgage, which rises in line with
the base rate.
However, financial experts have now advised customers to opt for a
Switch & Fix loan where possible, so that they have the
opportunity to change to a fixed-rate mortgage if interest rates
start to rise dramatically.
According to Bob Riach, from Riach Independent Financial Advisers,
it is "inevitable that interest rates will start to go up".
He said it is important to "act now" so that customers are
protected from higher monthly payments.
"Borrowers should move to a new fixed-rate deal if they think
variable mortgage rates will rise in due course," he
advised. 