Current long term mortgage deals 'competitive'

13 October 2006
A leading market analyst has described the current range of long term fixed-rate mortgage deals as "very competitive" but simultaneously warned against people opting for these deals unless they are certain.

Julia Harris, a mortgage analyst for financial advice website MoneyFacts.co.uk, said that while long term fixed-rate deals represented a solid option for those whose situations were unlikely to change, it would not be best for all.

The fees attached with separating from a long term fixed-rate can sometimes be markedly higher than the market average and agreeing to a long term deal will tie you in for a while, regardless of how your personal circumstances could change.

"For consumers looking for long term security, with the peace of mind that their mortgage repayments will remain at a level that they know they can afford, having [an] additional choice of products is welcomed," Ms Harris said.

"Undertaking a long term fixed-rate mortgage commitment should be considered carefully, making use of independent professional advice to ensure you are fully aware of any product restrictions and fees."

Ms Harris said a long term fixed-rate could also be considered a "gamble" because of the risk of economic fluctuation and changes within your own household or earning potential.

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