“The Bank of England said in the past that when base rate starts to rise it would be gradual but five consecutive increases brings into stark reality the concerns within the wider economy.
“Mortgage payments are arguably the largest monthly cost for homeowners, so by fixing their mortgage they will know exactly how much they must pay for the term of their fixed rate period. Unlike the escalating costs of utilities bills and petrol, food and other essentials, knowing mortgage payments won’t go up will be some consolation to people’s budgets.
“We are seeing more lenders bringing in 10-year fixed rate mortgages and the rate is often similar or even slightly less than five-year products. As the cost of living continues to rise, to know you will be paying the same monthly payment over the next 10 years should bring some level of comfort.”
Simon Webb, managing director of capital markets and finance at LiveMore