Halifax: Time is ripe for fixed rate mortgage

Halifax: Time is ripe for fixed rate mortgage

Recent economic indicators have prompted Halifax’s mortgage director to recommend the benefits of taking out a fixed rate mortgage in the current climate.

Craig McKinlay said: “Current growth projections in the February inflation report support the expectation for a first interest rate rise towards the end of 2015, though uncertainty around the timing remains high. It is therefore surprising to note that more people are not taking advantage of the low rates on offer and fixing their mortgage.”

Borrowers currently on a standard variable rate could, he said, find substantial savings by remortgaging, as well as the opportunity to fix a rate over the longer term, and protect against future rate rises.

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According to research by Halifax, remortaging has remained subdued, despite house purchases going beyond the one million mark in 2014 and fixed rates continuing to fall below the standard variable rate.

The research revealed that a consistent number of homeowners were choosing to remain on SVR mortgages.

Mr McKinlay said: “For more than two years the gap between SVRs and fixed-rate mortgages has grown, with the latter falling to record lows.”