8
May
Mortgage holders offered new advice
New advice on mortgages has been issued following yesterday's
announcement that the interest rate will remain at 0.5 per
cent.
Ray Boulger, a financial expert from mortgage broker John Charcol,
said that homeowners with variable-rate home loans should switch
products to avoid having a rapid rise in repayment levels in the
future.
The base rate is expected to remain at 0.5 per cent for the rest of
the year, but it will inevitably start escalating once the economy
shows signs of improvement in the future.
People with interest-only loans should pay particular attention to
the advice, according to Mr Boulger.
He remarked: "Switching to a fixed rate for at least five years
will be the best way for most people to buy protection from
increased rates."
Anyone currently considering their mortgage options should make
sure they seek advice before making a final decision, the expert
added.
