25-06-2007

Would-be borrowers urged to obtain fixed-rate mortgage

Borrowers have been urged to obtain a fixed-rate mortgage before interest rates rise again next month, it has emerged.

According to moneysupermarket.com, the country's leading ten lenders have increased their interest rates since the last base rate rise in May, meaning would-be borrowers should secure a fixed-rate mortgage before the next increase of the base rate.

"While fixed rates have been looking pretty good in relation to the base rate, they appear to be going up - and fast," said Louise Cuming, head of mortgages at moneysupermarket.com.

"Borrowers needing the stability of a fixed-rate product should reserve their next deal now if their current mortgage term is set to end soon," she added.

The UK's top ten list of lenders includes Abbey, Nationwide, Royal Bank of Scotland, Alliance & Leicester and HBOS in first place.

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