People ‘may have to take a gamble’ on their mortgage

People looking for the best rates on their mortgage may have to take a gamble on either a fixed-rate or tracker deal, one expert has suggested.

Darren Cook, head of mortgages at financial comparison site Moneyfacts.co.uk, said that traditionally fixed-rate mortgages are more popular, but record-low base-rate levels are encouraging increasing numbers of individuals to consider a switch.

He said: “The whole thing is taking a gamble and trying to judge how long the base rate is going to stay at 0.5 [per cent].”

Fixed rates are currently quite expensive, Mr Cook added, due to the fact lenders believe that interest rates are only going to go up.

For those looking to take advantage of the current rates on a tracker deal may be advised to take a product that does not have an extended tie-in, so that they can opt out once the levels increase again, he remarked.

His comments come after the Bank of England Monetary Policy Committee voted to keep the base rate at 0.5 per cent.

By Francis Finch