NAILED DOWN ‘I’LL PAY 1.64PC FOR FIVE YEARS’

The prospect of rising rates has prompted Andy Moody to fix his mortgage for five years.

The 34-year-old is switching his current rate of 2.35pc to a 1.64pc deal with Bank of Cyprus. He is borrowing £350,000 against his Nottingham property, which is valued at £475,000.

Mr Moody, who works in corporate finance, said: “We wanted to get some certainty given the likelihood of rates rising. I don’t think it will be a particularly big rise, but I thought I would like the security of fixed outgoings.”

Mr Moody will pay slightly more each month. This is because the five-year fix has allowed him to reduce his repayment schedule from 30 years to 25 years.

He is comfortable that his Bank of Cyprus deal is unlikely to be bettered.

“I think I’m quite comfortable with the certainty at 1.65pc. That’s a perfectly acceptable rate to be locked into for the next five years.

Mr Moody also has a buy-to-let property on which he is currently paying a mortgage rate of 3.05pc. This is due to mature to a variable rate of 4.99pc next month (see main story) and so Mr Moody is currently looking to get a five-year fixed rate for this second property, as well.