Mortgages  

Time to switch to fixed rates: Copland

Data from the Bank of England’s quarterly credit conditions survey showed a net increase in secured lending by more than 17 per cent of lenders, compared to a fall of more than 30 per cent in the second quarter of 2007.

Mr Copland, director of mortgage services for LSL Property Services, said that, looking at the data, now could be the time to change to a fixed-rate mortgage.

He said: “While it is hard to call the bottom of the market, it is starting to look like we have now reached or passed that point. What that means for borrowers is that it may well be time for all those sitting on standard variable rates to remortgage to some of the very low fixed rates out there.

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“While rates dropped in the last three months and may even drop further in the short term, it won’t take much more stimulus before SVRs start rising to levels above what even the five-year fixed rates are at the moment and those people just making ends meet on their SVR may suddenly be caught short with higher interest rates again.”

ADVISER VIEW

Derek Gair, partner of Hampshire-based GDC Associates, said: “I think any recovery is set to be weak, and I don’t see the base rate rising any time soon. Any rise could cause huge amounts of damage.”