Bestinvest: Fixed-rates better for large purchases

People taking out high-value mortgages ought to consider fixed-rate products, one expert has suggested.

Peter O'Donovan, mortgage manager for Bestinvest, said although it depends on a borrower's circumstances, in most cases fixed-rate mortgages are more suitable for many people.

With people likely to be paying out a large proportion of their disposable income on mortgage repayments, fixed-rates can offer a certain degree of protection against interest rate rises, Mr O'Donovan suggested

"If they're not used to those sums being paid then it can be a shock to the system if suddenly they get another letter telling them they've gone up again," he remarked.

However, some people may find that they have been paying more in rent than they would be on a mortgage, he added.

The latest figures produced by the Council of Mortgage Lenders revealed that fixed-rate products amounted to 79 per cent of all mortgages in August.

Find out more about fixed-rate mortgages