Which to choose – fixed or variable mortgage rates?

Whether to choose fixed or variable mortgage rates is the quandary facing many home-owners despite the base rate continuing to remain at 0.5%.

With recent mortgage market developments many are questioning if it is safe to opt for lenders variable mortgage rates wondering if a fixed rate is a better option.

While fixed mortgage rates are a safe option the question is which term is best a 2, 3, 5 or even 10 year fix? No one wants to chose a mortgage term to find rates shooting up as the deal comes to an end.

Many economists advise they are not expecting any short term changes to the BOE base rate, in fact most suggest changes are not likely to happen until 2014 or 2015. If a fixed rate mortgage is your deal of choice then knowing the base rate could remain at 0.5% for a further 2 to 3 years might make a 5 year fix sound a more secure option.

Defaqto the independent financial research company, has undertaken research into the type of mortgages most commonly on offer.

Their research reveals that the availability of fixed mortgage rates increased from 49% to 68% during the last 5 years. Availability of tracker mortgages is down by 10% having fallen from 27% to 17% in the last 2 years, 2 year fixed rate mortgages are the most widely available product making up 30% of all mortgages.

Whatever type of deal you are looking for, whether you are interested in fixed or variable mortgage rates contact Deal Direct today and we will source a good deal for you.