Fixed-rate mortgage advised as best for first timers

First-time buyers have been advised by a financial expert to choose a fixed-rate mortgage for peace of mind.

People making their first step onto the property ladder are pushed to the edge of their affordability and therefore would be unable to deal with any unexpected rate rises, Louise Cuming, the Head of Mortgages at moneysupermarket.com, has said.

'I would never suggest that they take a gamble on rates,' Ms Cuming warned.

While there have been two rate cuts in recent months from the Bank of England, the future is not certain, she added.

Ms Cuming stated that no one could have predicted the credit crunch and volatility in the stock markets experienced last year.

'There's absolutely no doubt that people in the first few years of their home-buying lives have to stretch to the absolute maximum of their income,' she stated.

Most Britons (57%) would choose a fixed-rate mortgage in the current climate, a survey by Fairinvestment discovered last week.