Mortgages for Professionals

Professionals are better off taking out fixed-term mortgage agreements, according to the independent financial advisor Bestinvest.
The risk for those buying high-price properties is greater, because marginal increases in interest-rates can adversely affect mortgage repayments.
In order to avoid financial risk, Peter O’Donovan of Bestinvest explains that professionals - particularly first and second-time buyers - should take out fixed-rate mortgages to avoid any shocks.
He said: “Most people at this sort of level will tend to go for a fixed rate – because an increase of even a quarter of a per cent can add £60 or £70 to their mortgage [repayments].”
But fixed-rate mortgages are a double edged sword.
With payments fixed over a two to five year period, it also means that borrowers miss out on the beneficial results of decreases in interest rates that would otherwise reduce mortgage payment costs.
However, in light of the risk involved professional borrowers are advised by Mr O’Donovan to err on the side of caution and opt for a fixed-rate deal as finances are often tight.
Fixed-rate mortgage deals reached highs of 66 per cent in 2006, up nearly 30 per cent on 2004 figures, according to the Council of Mortgage Lenders.