Would you benefit from a mix-and-match deal?

Half of all property advisors are predicting an upcoming rise in interest rates. The other 50% are saying they will remain around the same level in 2011. This has left many potential home-owners with a lot to think about before purchasing their property investment.

This does favour the ‘mix and match’ deal which will enable property owners to gain from having a fixed and tracker deal. But do they actually give you a benefit?

These deals allow you to buy 50% of your mortgage on a fixed rate while the remaining 50% is placed on a tracker mortgage. They have disadvantages and advantages…

Pros
• If the interest rate rises, half the mortgage is protected
• If the interest lowers, half the mortgage benefits from this reduction
• You can benefit from the different terms and conditions on these two types of mortgage
• You can receive additional benefits such as a free payment holiday

Cons
• You will need to pay 2 arrangement fees which are around £199 to £999
• Many lenders will charge full set up fees to compensate for your potential gains
• The rate is still not guaranteed