Mortgage industry advisers have warned borrowers not to opt for fixed rates, as the outlook for interest rates is good, with reduced rates on the horizon.
With the reduction in the Bank of England base rate to 4.50% fixed rates should also reduce, especially because the prediction for interest rates is between 4% and 4.25% over the next year.
Our view
We still believe that fixed rates offer excellent value for money and stability for people needing to know their payments will remain static for a period of time. If borrowers can lock into a fixed rate deal around the 4% mark, we really do not believe they can go far wrong in the current climate.
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