Debtors helped by fixed-rate mortgages

The number of fixed-rate reductions being seen in the mortgage market has been described as a “welcome Christmas present” for potential borrowers.

Drew Wotherspoon, director of communications with John Charcol, noted that for those who have been waiting for such a deal, the drops being made this week “should provide some welcome Christmas cheer” for anyone in need of “the security” fixed rates bring.

However, he did warn those looking to take out loans that rates will have to increase “at some point in the future” and borrowers should be aware that choosing the suitable length of term is as important as finding the best rates.

“Tracker mortgages are still looking more attractive overall,” Mr Wotherspoon added.

His comments follow those from moneysupermarket.com’s Hannah-Mercedes Skenfield, who recently observed that the greater number of mortgage products available on the market is “encouraging” for first-time buyers.

She added that the sector could see a strong improvement if lenders continue to help such purchasers.

By Sarah Adie