By Romesh Navaratnarajah: Several experts believe that fixed-rate mortgages will still be popular in the UK even though tracker-rate mortgages are currently cheaper due to the Bank of England's record low base rate of 0.5 percent.
Borrowers think that paying a premium for a fixed-rate mortgage is not a good move, and as pointed out by various reports.
However, there is no guarantee that the base rate will remain at 0.5 percent despite the belief that the first increase will come in 2016 at the earliest.
Nonetheless, economists have been wrong before and may make mistakes again. More importantly, nobody can accurately predict what will happen in the next few months, especially in the next few years.
Thus, borrowers who want to be sure that their monthly repayments will not change for an agreed period opt for fixed-rate mortgages. Related stories:15% discount on mortgages reappears in ShanghaiUS mortgage rates fall to new record lows
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