With the Monetary Policy Committee having raised the Bank of England Base rate by a number of times over the past year, to reach its current level of 5.5 per cent, Wriglesworth indicated that market uncertainty meant that longer term fixed rates were the best option for borrowers. He said: “Base rates could continue to rise, which could leave borrowers facing financial difficulties. Brokers who are offering two-year fixed rates now are miss-selling.”
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However, following his comments a number of lenders, and intermediaries expressed their disappointment. Alex Hammond, PR manager at Kensington Mortgages, said: “The number of borrowers using advisers has grown, due to more products and choice within the market. The reason why brokers are so in demand is that they can judge the best product for the individual borrower and can look at the borrowers’ attitudes to risk.”
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Nick Gardner, communications director at Chase De Vere Mortgage Management, said: “Two year fixed rates are the most popular by a mile as people like the option to review and change their mortgage as there is a lot of drawbacks to having a long term mortgage.
“I would be delighted to see a ten year fixed rate that offered a get out option for the borrower as people don’t know what’s going to happen in two years, let alone ten, 15 or 20.”
