Variable rate deals 'are the way to go'

With the interest rate cut for the first time in seven years, mortgage experts have advised that variable rate home loan deals will give the best value for money.

Talking to the Sunday Telegraph, Jennifer Nielsen, of the Loan Market Group, said that fixed-rate deals would come into their own if more rate cuts are introduced in the future.

She suggested: “We are almost certainly looking at a downwards or, at worst, flat period in mortgage rates, so you shouldn’t lock yourself into a fixed rate at current levels.”

Meanwhile, for savers unsure of where to go after the rate cut, financial planner Paul Bilson insisted that there were still some good deals available.

Term deposits were identified as a safe place for investment, as they will be protected against any drop in the average savings interest rate.

His comments echoed an earlier article in the Sunday Mail, which advised savers to lock their savings into term deposits, which can be opened with relatively small cash sums.ADNFCR-1761-ID-18772944-ADNFCR