Richard Sharp, member of the Financial Policy Committee, said in his opinion home owners should be choosing to fix the rate of their mortgages now as rates were already at rock bottom.
Speaking to the Treasury Select Committee Sharp said borrowers had become used to low rates after a 20-year decline in interest rates and so in the past they would have benefitted from taking variable rate mortgages.
But he said in reference to choosing a fixed rate: “Now rates are close to the zero rate bound, so you’ve got to make a judgment about the future. Mine is, this would be a good time.”
Sharp said the structure of the UK would have lower risk associated with the housing market if more borrowers chose to fix their mortgage rates particularly if they chose to fix for longer periods.
