Five-year rates rose about 0.75 percentage points in the last few weeks of 1992. There are shorter-term fixes available at low rates but one or two-year terms are not long enough.
'Don't be greedy - 8.5 per cent or 8.75 per cent is worthwhile over five years.'
Mr McKenna believes it will be increasingly difficult to borrow a high proportion of a property's value. Large deposits will be a passport to the best borrowing deals.
'For those people who fit the lenders' desired criteria there will be a plethora of products available, but those who do not will find it difficult to borrow.
'I think capped-rate loans - where the rate can fall but never rise above a certain level - will become increasingly popular.'
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