29
May
Longer mortgages are better over time
Because people are now less likely to move home as often as in the
past, it is advised that those who are looking for a mortgage take
the opportunity to purchase their home with a longer-term
mortgage.
According to Ray Boulger, senior technical manager at John Charcol,
it works out cheaper in the long term to take on a five-year rather
than a two-year tracker mortgage, because the end of the two years
will see buyers revert to a standard variable rate, and require a
remortgage.
"You can get lifetime trackers for not that much more than two-year
trackers.
"I think that in most cases the best value is either a lifetime
tracker or a five-year fixed," he said.
Deposits have been an issue for many buyers in recent years, but
the government has introduced a few new schemes, such as NewBuy and
FirstBuy, both of which can see buyers secure a home with just a
five per cent deposit.