Think before switching to fixed rate mortgages says Nationwide

Switching to a fixed rate mortgage should be considered carefully. A rise in interest rates would mean more expensive mortgage repayments for many householders on variable rate mortgage agreements. Mortgage holders have been warned to think twice before they take the advice of brokers and sign up to a fixed-rate mortgage, according to Nationwide Building Society. The current 0.5% interest rate means that householders on standard variable rate (SVR) mortgages have been paying out smaller repayments to their lenders. However, the latest inflation figures, that were much higher than experts had predicted, have increased the prospect of an interest rate rise before the summer.