A significant number of home owners have found monthly mortgage repayments have dropped considerably over the last year with many tempted to stick on a Standard Variable Rate (SVR) for the time being.
For some, this is the only option due to a high loan-to-value ratio of their property, but for others the significant drop in their monthly payments is a strong enticement to fix their mortgage and carry on paying at the reduced rate. Kerry Chaloner, property finance consultant at Armstrong Watson, comments: "Those who can afford to do so should make it their priority to enquire about fixing their mortgage rates in order to protect themselves from future rises.
"History shows that since the 1960s there has not been a decade in which interest rates did not reach the dizzy height of double figures - potentially until now. I'm not suggesting that the base rate will rise in excess of 9 per cent in the next 23 months, however, the long-term outlook is uncertain.
"I would advise that while the interest rates are at an all time low, borrowers should seriously consider fixing in at these rates for as long as possible ."
