Longer mortgages are better over time
Because people are now less likely to move home as often as in the
past, it is advised that those who are looking for a mortgage take
the opportunity to purchase their home with a longer-term
According to Ray Boulger, senior technical manager at John Charcol,
it works out cheaper in the long term to take on a five-year rather
than a two-year tracker mortgage, because the end of the two years
will see buyers revert to a standard variable rate, and require a
"You can get lifetime trackers for not that much more than two-year
"I think that in most cases the best value is either a lifetime
tracker or a five-year fixed," he said.
Deposits have been an issue for many buyers in recent years, but
the government has introduced a few new schemes, such as NewBuy and
FirstBuy, both of which can see buyers secure a home with just a
five per cent deposit.