Changing mortgage products is a gamble, says expert

Britons are currently having to "gamble" on the course of the interest rate by choosing between taking out a fixed or standard variable rate mortgage, it has been claimed.

Ben Wilkie, editor at What Mortgage, observed that that homeowners would need interest rates to rise by "at least one per cent" before fixed-rate deals become the best option.

"If they were to get a two-year fixed now and then the rate only goes up by one per cent in the next 18 months, then they probably would end up spending more money than they would if they were on a standard variable rate . It really is a gamble whichever way you go," he commented.

Figures from first direct show that the percentage of people taking out fixed remortgages has increased recently with 33 per cent of all deals being for fixed products in the last month.

This compares to the year-to-date average of 25 per cent.

"As we get closer to people thinking that rates are going to go up, I think that more people will take out the fixed products," Mr Wilkie noted.