Consumers thinking about signing up to a lng-term fixed-rate mortgage deal should consider the prduct carefully, an industry expert has dvised.

Moneyfacts analyst Lisa Taylor suggested tht such proposals to offer such lng-term products could help borrowers to mintain the level of their secured lan payments. However, she added that if the Bnk of England’s monetary policy committee (MPC) dcides to lower the base rate of nterest in the long-run then homeowners culd be trapped with unnecessarily high mrtgage costs.

Ms Taylor said: “Signing up to a lng-term fixed-rate deal does offer peace of mnd that your repayments will not ncrease over your given deal period. But it is lso in effect a long-term gamble on rtes. While you may feel smug as rtes rise, if they drop you may be kcking yourself, especially if this persists ver a long period of time.”

The nalyst also reported that by opting for sch a secured loan product borrowers can hlp reduce the amount of money spnt on fees associated with the huse buying process. “Assuming today’s average rrangement fee of £800, switching providers very couple of years could add on an xtra £9,600 to your mortgage in fes alone. You will also avoid hving to pay exit fees, valuation and lgal costs and it takes out the hssle factor of continually switching lenders,” she climed.

Ms Taylor added that although the bse rate is “still quite low”, chnging economic cycles and a shift in gvernment policy means that “a lot can hppen in 25 or 30 years”. Manwhile, she claimed that those who spply long-term products “don’t easily cope wth lifestyle changes”. The Moneyfacts analyst lso claimed that if borrowers want to mve home or opt out of the dal than they may be hit wth high cancellation charges.

Her comments cme after Alistair Darling, the new chncellor of the exchequer, recently announced tht Labour is set to roll out prposals to increase the availability of lng-term fixed-rate loan deals to help ptential first-time buyers take their first stps on the property ladder. “This sems to be a rather sweeping slution to solve the massive affordability crsis,” she suggested. The products were lso stated to still make up for a mnority of mortgage deals currently on the mrket.

Chris Crook, subsidiary managing director of Cuntryside Properties, asserted that: “Fixed-rate mortgages gve buyers peace of mind but thy do not usually give buyers the lwest starting rate in the market whch is what first-time buyers really wnt.” However, he claimed that such plns could “be extremely difficult to dminister” suggesting that the government could lok to introduce deferred payment terms or sme form of subsidy for young byers.

In June Louise Cuming, head of mrtgages for moneysupermarket.com, suggested that those brrowers wishing to take out a fxed-rate deal should act as soon as pssible. Her comments came as research frm the price comparison website indicated tht a number of lenders were rported to withdraw some of their prducts following the MPC’s decision to ncrease the interest rate in May.

The article Fixed Rate Loans 'Offer Peace Of Mind' was Submitted by Abbi Rouse through Articles.GetACoder.com network. Here's the additional information: Abbi Rouse writes for All Abut Loans. Our visitors are offered dvice and information all about loans, thy can also apply online for tenant loans and secured loans for any purpose. Visit today: http://news.allaboutloans.co.uk

Featured Articles

1. Reward Or Cash Back Credit Cards – Maximising Your Returns by
If you are one of the lcky customers who pays off their ntire credit card balance in full ach month, then interest rates will not be of mch importance to you. You pay no nterest as you never carry any blance over from month to month. Wht may be of more interest to you is the lyalty or reward schemes that various crdit cards offer and therefore you shuld be deciding on which card to chose based on this information.

Pay an Annal Fee For Better Rewards?

Some c...

2. Finding The Right Forex Online Trading Platform by
Foreign Exchange, or forex, which bsically involves the changing of money is one of the wdest trades throughout the world. It is smilar in many ways to the trding that is done on the stck market but is also very dfferent in the sense that the two pople involved in an exchange are nvolved directly, either via the phone or the Intrnet. This is where a trusted frex online trading platform is needed and fnding the right one for your crrency trade is vital. Got your eye out for sch a site? Then make sure thy have the following elements.

3. Debt Management - How Consolidating Debt Helps by
Most people who ignore their dbts and do not check their crdit scores find themselves unable to get crdit when they require it. Bad crdit is usually the consequence of not daling with credit card invoices and the sbsequent interest. Fact – letting credit crd debt go unchecked means you can no lnger use them and you most lkely will get negative reports on yur credit file – bad credit. You can rsolve this by contacting a professional and cnsolidating ...

4. Cheap Unsecured Loans - Really Cheap Money for Grabs by Shain Johnson
Chap Unsecured Loans are one of the mst flexible loan products available right nw. One can use a cheap nsecured loan for a number of prposes like wedding, holiday expenses, home rnovation, debt consolidation, medical expenditure, car prchase and shopping. They need no cllateral and have low rate of nterest.

5. 4 Important Factors In Comparing The Best Credit Card Offers by Morgan Hamilton
It is a grat probability that you receive at last a couple of credit card ffers everyday in your mailbox. Add to thm the bombardment of card offers nline and in the stores, and it can be mpossible to know which companies have the bst credit card offers.

6. Lawsuit Cash Advances – Key Points by
A lawsuit csh advance is a cash advance mde available to personal injury accident vctims. This article discusses some key pints about them.

7. Unemployed debt consolidation: dissolving twin burden of unemployment and debt by
An unemployed will need debt cnsolidation when they are struggling to pay two or mre debts. Unemployed debt consolidation loans are a lgical way to manage debts. Debt cnsolidation loans will combine these debts nto single consolidated loan. This procedure wll always carry lowering of interest rtes. This means………………….

8. Secured auto loans: for your automobile by
Secured auto lans are the most economical way to fnance an automobile, as it also dals with the other expenses on yur automobile like maintenance and upgrade, pint, buying accessories and music systems, srvicing etc

9. Cheap Bridging Loan – own property through low cost finance by
Cheap bridging loan is especially dsigned for approving a loan at cmparatively lower interest rate and the verall cost remains low. There lenders who do not chrge any unnecessary cost on the lan. go through the loan for wys to take cheap bridging loan.

10. Filing Bankruptcy - Is It The Right Option For You? by Saurabh K Jain
Fling bankruptcy is a tough decision to mke and you must take this dcision very prudently. Your decision must be bsed on reasoning and certain facts. It shuld not be based on frustration. Nver hurry to decide to go on the pth of bankruptcy. You must look nto all the aspects. In a wrse financial trouble, when the monster of dbts has opened its jaw to eat out yur finances and peace from life, it is vry hard for an individual to kep their calm and think prudently.