Mortgage seekers taking a risk

Taking out a mortgage at the moment has an element of risk attached to it, an expert has suggested.

Recent figures from mortgage broker John Charcol showed the proportion of mortgage seekers looking for a fixed-rate deal reached a high of 83 per cent in June.

However, with the base rate of interest expected to stay at 0.5 per cent for the time being, Moneyfacts.co.uk head of mortgages Darren Cook explained those shopping for such deals could be "taking a gamble".

"Economists are expecting the base rate to stay at 0.5 until the middle of next year – and if thats the case then people can look at a tracker rate mortgage," he said.

Those who lock themselves into a fixed rate deal could find they pay over the odds if the base rate does not go up, however, those on tracker deals could have similar results if it does.

With such uncertainty around, some may decide they would rather stay where they are and improve their property with a pool house or kitchen extension.