James Moore: Forget today's best deals and fix your mortgage for longer
Outlook Moneyfacts, the financial data company, says it's time to celebrate 25 years of the fixed rate mortgage.
Back then there were just seven of them, with the best offering three years at 12.4 per cent. That looks frightening until you consider that base rates were at 14 per cent, RPI inflation stood at 8.3 per cent and the average price of a house was £50,000.
Things are a little different now. There are 2,181 such deals, outnumbering variable rate products by nearly three to one. With interest rates set to rise, and perhaps quicker then even outlying forecasts would have you believe, Moneyfacts characterises them as the industry's potential "white knight". That could prove to be an accurate description.
The problem, as it points out, is the question of when to fix and for how long. Given the impossibility of predicting the market, it's a question that shouldn't even be asked.
Better to base decisions on what people can afford and what's out there when they're buying.
The Bank of England has the jitters about the number of borrowers who have extended themselves to the degree that even a small rise in rates could tip them over, and no wonder. If more of them were on fixed rates, it wouldn't need to worry so much.
Borrowers should arguably be encouraged to fix for longer, even if it does mean them occasionally seething while loud-mouthed friends brag about their deals.
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 There is literally not a single woman in this iPhone 6 queue
- 4 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...