Safety first proves a property plus
The recent credit crunch is unlikely to affect high-value mortgage holders, it has been revealed.
With professionals tending towards fixed-rate mortgage deals it is likely the danger will have passed by the time most are required to renew their policies.
Peter O’Donovan mortgage manager of financial advisory BestInvest said: “People at this sort of level will tend to go for a fixed rate.
“So in two or three years time when they come out, we would suggest that the rates would be lower so they won’t be affected too much.”
Mr O’Donovan added that because professionals buying at the high-end of the market tend to be first or second-time they are more cautious, hence the preference for a fixed-rate mortgage deal.
374,000 people took out fixed rate deals in quarter one of 2007, at a rate of 5.35 per cent interest.
The base rate of interest was last week raised by the Bank of England to 5.75 per cent.
