Time to consider fixed rate
Published 19/08/2010 | 05:00
MORTGAGE holders, other than those who have a tracker, should review the interest rate they are paying and consider fixing for more than three years, a representative body for mortgage brokers has advised.
Professional Insurance Brokers Association, the country's largest group of independent brokers, was responding to lenders raising the interest rates on standard variable mortgages. Director Rachel Doyle said: "Variable and long-term fixed rates are on the rise, so delaying a decision may be costly."
She advised that people should generally not fix for periods of less than five years.
"Fixing at a good rate for longer terms gives security. Shorter-term fixing could leave you exposed to a large jump in repayments within a relatively short period of years," she said.