Opting for a
fixed-rate mortgage which lasts for a long period of time is a "gamble", an expert has claimed.
Possible fluctuations in the economy and in a household could mean that a long-term
mortgage offers less value, or becomes unsustainable over time, stated Julia Harris, mortgage analyst at Moneyfacts.
However, for customers looking for long-term piece of mind,
fixed-rate mortgages may offer the best solution, she asserted.
Ms Harris added that there are currently some "very competitive" long-term
fixed-rate mortgages available.
"Today still less than 20 per cent of providers offer
fixed-rates greater than ten years, offering 77 products in total," the expert remarked.
"With over 15 times more short-term products available, it is clear that the long-term fixed-rate market is still a relatively unpopular choice with the general public."
Ms Harris also cites research conducted by Mortgages Direct, which revealed that 92 per cent of mortgages taken this year have been fixed-rate deals.
Several experts, including Milan Khatri of the Royal Institution of
Chartered Surveyors, have predicted that
interest rates will rise again this year.
