Someone who can only afford the payments on a low discounted rate is clearly overstretching and would be better off with a fix. Margins on the typical standard variable rate mortgage were much higher, priced on average at 1. 7. Is still a pretty good rate even if the base rate falls. Per cent for 15, 20 or 25 years, is more keenly priced than the leeds offer, fixed at 5. 9. Rupert jones reports on the mortgage deal few take up. Furthermore, the added sophistication of the mortgage market means that you can get some capped rate mortgages with introductory discount periods.

But for "rate tarts" who like to transfer their deal every few years, there could be fewer special deals around. Even factoring in further increases to the base rate and higher fees, these trackers are more competitive than many two- year fixed rates. If you fix all of your mortgage, the rate is 5. 95%. In order to take advantage of the best rates, you should look at the deals from one to three years.

Mortgage advisers report that people choosing a mortgage tend to look at the cost rather than consider the advantages of fixed loans compared with variable- rate deals. Wouldn't it be nice to be able to predict the cost of your mortgage over the next decade? Of course, if rates drop, then you are stuck with making relatively high monthly repayments. If the interest rates go down whilst your fixed rate deal is in place, then you will lose out.

The uk mortgage market: taking a longer- term view. Per cent, giving a current payable rate of 4. 3. Calculating mortgages. But most borrowers just don't like locking in for that long and will often opt for the cheaper rates available on shorter term deals. The bets buy product offers a fixed rate of 4. 6. After a period of record breaking lows, the first interest rate increase in four years gave homeowners something to think about.