Moneysupermarket.com suggests fixed rate mortgages may be beneficial

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Moneysupermarket.com suggests fixed rate mortgages may be beneficial

Mon 17th Jan 2011

The way the mortgage market is looking currently means a fixed rate deal may be the best way forward, according to a source from moneysupermarket.com.

Site editor Clare Francis pointed out that a growing number of economists believe there may be some upward movement in the base rate in the first half of 2011.

"With inflation remaining stubbornly above the government's two per cent target, pressure is mounting on the Bank of England to start increasing interest rates," she said.

Ms Francis claimed that several high-profile fixed rate arrangements have already been pulled from the market and consumers will need to act fast to secure the most competitive propositions while they are still available.

Her comments follow research by moneysupermarket.com showing a one per cent increase in the base rate would mean an extra £77 per month for people on the average tracker rate to pay.

The minutes from this month's Monetary Policy Committee interest rate meeting are due to be published on January 26th.

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