Fixed rates are 'bad value'

Buyers unsure about which mortgage to sign up to should steer clear of fixed-rate deals, according to a mortgage expert.

Drew Wotherspoon, of independent mortgage firm John Charcol, said with rates "yo-yoing" the decision of which mortgage product to opt for is a difficult one.

However, he added, most commentators believe the Bank of England''s base rate will drop by at least one per cent by the end of 2009, which makes tracker mortgages "clear winners".

"Many trackers now have a ''drop-lock'' option, which allows borrowers to play a waiting game and benefit from any fall in interest rates," he added.

Mr Wotherspoon claimed many of the deals allow buyers to fix the rate of their mortgage without filling out any extra paperwork.

According to the Bank of England''s monetary policy committee, failure to cut interest rates will result in soaring unemployment, with as many as 125,000 ending up jobless in a month, reports the Guardian.

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