Homebuyers who can’t afford risk ’should opt for fixed-rate mortgages’

Opting for a fixed-rate mortgage can give homebuyers peace of mind during the first few years on the property ladder, it has been claimed. Louise Cuming, head of mortgages at moneysupermarket.com, believes that first-time buyers should not take their chances with a mortgage that tracks the Bank of England rate. The base rate has been cut in successive months by the Bank, but those reductions followed a series of hikes last year.

Ms Cuming suggests that affordability is the key when deciding what product they take out in the early stages of home ownership. For people at the maximum of their affordability, I would never suggest that they take a gamble on rates. None of us have got a crystal ball - who would have predicted what happened last year? she asked. The Bank of England’s next decision on the interest rate is due on March 6th.