by Charles Haresnape managing director mortgages, Aldermore


reduced to 3.08%, 5-year fixed rates are also at a 10- year historic low at an average of 4.51%.


There are a number of factors affecting the mix between fixed and variable mortgage interest rates, some of which are based on fact and some on sentiment. A lot of clients still look to shorter term views and are almost conditioned to thinking in terms of 2-year fixed or 2-year variable rates as this allows them flexibility to


move house or repay loans without penalty in the near term. In reality how many people actually do that will be small in number. As far as brokers are concerned they clearly must take into account the circumstances and risk appetite of their clients and we would all like to think that this is the overriding factor rather than the opportunity to remortgage the client again after a couple of years. It is interesting that even in times of relatively low


Source: Council of Mortgage Lenders 15


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