Auctioneers advise fixed-rate loans
Encouraged by the current historically low interest rates, an increasing number of mortgage holders are opting for variable loans, according to the latest official statistics. Five years ago, 68.9% of loans approved were fixed. Now, six out of every 10 mortgage holders have variable loans. While this was a low level of fixed mortgages, economist Jim Power said at the weekend, if one considered a large proportion of those fixed loans were discounted fixed rates for a one-year period, then the underlying situation was less than stable.
“A high percentage of loans fixed for periods as long as 10 years would provide a huge level of insurance for individuals, the housing market and the overall economy,” Mr Power told the annual conference of the Institute of Professional Auctioneers & Valuers (IPAV).
