14
Jun
10-year fixed rate mortgage is 'an attractive offer'
Yorkshire Building Society's new 4.99 per cent ten-year fixed rate
mortgage is a good deal, a finance expert has said.
Andrew Hagger from Moneynet.co.uk has suggested that customers
should take advantage of the mortgage opportunity, which he calls a
"best buy".
He said: "Unless you are monitoring the market very closely you
risk missing the boat as rates can suddenly turn and start rising
quite sharply before you've actually made your mind up."
Mr Hagger added that a benefit of choosing a ten-year fixed rate
mortgage was that customers are only charged one lending fee.
Fewer than 40 per cent of mortgage lenders now charge a standard
variable rate lower than Yorkshire Building Society's offer.
A disadvantage that Mr Hagger mentioned was that it would not take
too many rate rises for the 4.99 per cent deal to be broken, as
many trackers operated on margins of two to three per cent above
the base rate.
Last week, HSBC revealed that British homeowners chose to split
their mortgage so that it was part-fixed and part-variable as they
did not know which was the best mortgage deal.