Homeowners are covering all bases!

There are homeowners amongst us who are thinking outside the box by fixing part of their mortgage and leaving the rest on a variable rate.

They have the perk of incredibly low interest rates plus the added security should rates suddenly rise of being part fixed.

The majority of banks have allowed these mixed these deals, but some may charge two arrangement fees. An example of this is may be,

a Halifax customer with a £150,000 mortgage and 40% equity in their home could have £75,000 fixed for two years at 2.99%, giving monthly repayments of £355.

The other £75,000 could be on a two year tracker rate pegged at 2.04% above base, giving a current rate of 2.54% and monthly repayments of £338. They would pay the fixed-rate fee at £1,895, but not the tracker fee at £995.

If there is a a sudden rise in the base rate, the customer would be a little more protected, if it remains the same they will benefit from the tracker rate.