Tuesday 9th October 2007
Fixed-rate mortgages may offer the best deal for those buying high-value properties, according to financial advisers, Bestinvest.
Those buying an expensive property may benefit from a fixed-rate mortgage, because even small increases in interest rates can translate into considerable increases in mortgage repayments when the amounts at stake are very high, Peter O'Donovan, a mortgage manager with Bestinvest advised.
Mr O'Donovan said: "Most people at this sort of level [high-end] will tend to go for a fixed rate - because an increase of even a quarter of a per cent can add £60 or £70 to their mortgage [repayments]."
He went on: "It obviously is down to the person's view of risk, and what they have in the background to support their mortgage repayments. But in general I would suggest to people borrowing a larger sum for the first time to take a fixed rate, because it's quite a large part of their disposable income going [towards repayments]."
Mr O'Donovan added that while the higher repayments of a fixed-rate mortgage might seem daunting, for those making the switch from renting, they might actually be shelling out less than they were previously paying in rent.
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Mortgages
News that Alex Salmond, the leader of the ruling SNP in Scotland, has been somewhat liberal with his recent comments about housing budgets and assistance has caught the attention of opposition... 
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