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Fixed-rate mortgages best for big buys

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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