Fixed mortgage costs under fire

The cost of taking out a fixed-rate mortgage has been criticised by one expert.

Mortgage broker at Click n go Mortgages Peter Cowell noted that Libor rates are presently “very low”, adding that because of this the sort of amounts people have to repay on fixed-rate loans are “extremely high”.

He argued that this has led to a fall in the number of people looking to take out such mortgages, as it would be a “big jump” for people used to paying variable rate products to find the extra money for a higher-rate fixed deal.

Mr Cowell remarked: “There is a lot more they [lenders] could be doing to support the customers at the moment.”

Mortgage brokerage John Charcol is one firm that has seen its clients increasingly deciding against taking out fixed deals.

It stated that only 41.9 per cent of the mortgages taken out buy its clients in August were of this type, the lowest proportion since December last year.

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