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&#39Most fixed-rate mortgages are overpriced&#39

The majority of fixed-rate mortgages are currently overpriced, says The MarketPlace at Bradford & Bingley.

Head of product operations David Bitner says, despite the drop in the bank base rate in July, fixed rates have risen dramatically in the last month with the City expecting rate rises.

He says there are still some cheap deals, such as Britannia&#39s two-year fix at 3.64 per cent, and Coventry&#39s five-year fix at 4.39 per cent, but borrowers should move fast before they disappear.

Bitner points borrowers towards tracker and discount deals with no early redemption charges instead of fixed rates. He says: “In June, there was no difference at all between the best fixed and variable rates on the market. Indeed, some fixed rates were even lower than their variable rate equivalents, triggering a leap in fixed-rate borrowing. Today, though, the gap between the best of the fixes and the best of the variables has increased to its widest point this year, with fixes generally priced much higher.”

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