Taking out a fixed-rate mortgage will "prove invaluable" for many borrowers, Alliance & Leicester (A&L) has said.
A&L director of mortgages Stephen Leonard offered the advice noting that this week's interest rate decision will be a "welcome relief" for many borrowers facing pressure on their finances.
The monetary policy committee voted to hold interest rates at 5.75 per cent, citing recent credit market volatility and the Bank of England's "central projection" of keeping consumer prices index inflation in line with the government's two per cent target.
Many borrowers approaching the end of cheap fixed-rate mortgage deals could be set to face increases to their mortgage repayments in what Savills Private Finance director Melanie Bien has termed a "payment shock".
Mr Leonard said that tracker mortgages can offer "good value" for borrowers who are "financially fliexible".
However, he added: "For borrowers needing financial security and the ability to budget for their outgoings, a fixed rate mortgage will prove invaluable."
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