Monday 7th August 2006
A number of leading mortgage advisers believe that despite last weeks interest rate rise, there are good mortgages to be had for those who shop around.
The Bank of Englands decision to raise interest rates by 0.25 per cent to 4.75 per cent last week, a five-year high, will see repayments rise by an average of £250 a year on a £100,000 mortgage.
However, the managing director of Moneypilot.co.uk, Neal Pritchard, claims that by shopping around and switching to a better mortgage deal, home owners can make up the difference of the interest rate hike.
He said that those on fixed-rate mortgages would be protected from the rise although many lenders have upped their rates in recent months in readiness for last weeks rise.
Ray Boulger from John Charcol insisted that tracker mortgages may continue to be a good option as they will still be competitive even in the unlikely scenario that rates climb by a further 0.5 per cent.
"An ideal combination is a tracker or discount with a droplock facility, allowing the borrower to switch to any of their lenders fixes in the future if and when they consider the fixed rate offers better value," Mr Boulger offered.
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