Borrowers with mortgages that allow penalty free overpayments should seriously consider making use o...
Borrowers with mortgages that allow penalty free overpayments should seriously consider making use of the extended window of opportunity, presented by another rate freeze, to overpay on their loan says Charcol.
The group says this tactic will lighten the burden of interest repayments when rates do rise, whilst borrowers with flexible mortgages will also have a buffer should rates rise further than expected.
Charcol says an estimated three-quarters of all new mortgages currently issued have flexible terms but many borrowers are unaware they have this facility. The group says borrowers who are unsure should check the terms of their mortgage.
In terms of the Base Rate, the group expects little or no change for several more months yet.
Ray Boulger of Charcol commented: "Historically low interest rates and continuing high employment levels mean that house prices are rising more quickly than most forecasters, including ourselves, expected at the end of last year. We now expect national house price inflation in 2002 to be in the 7-10% range, but with marked regional variations."
"It's generally accepted that we will not see any significant rise in rates before the third quarter of this year," added Boulger.
Although a large number of borrowers are choosing to opt for fixed rates now, Charcol is urging borrowers prepared to take a view on interest rates to weigh up their options carefully because it says there are still some excellent discount and tracker deals available.
Charcol: 0800 71 81 91 and www.charcolonline.co.uk
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