To guard or not to guard that is the question

"There is clearly a lot to be said for peace of mind when it comes to financial products, after all, the King of mortgage protection - the fixed rate - is as popular as ever. Yet it is because of the relatively high prices of fixed rates at the moment that this product may well find some homes up and down the country. The product would be best compared to a capped rate mortgage, but unfortunately we find ourselves with no capped rates currently available. The decision therefore rests on what your view on the future of interest rates is," says Drew Wotherspoon of Charcol.co.uk.

"If you believe rates are going to rocket up in the foreseeable future then there will clearly be some merit in taking this product or a fixed rate, but they really would have to go up by well over 1% in 2 years for there to be value. I do not believe that this is the future direction for rates, quite the opposite in fact. This product will therefore really only suit those who currently believe rates will go down but would value having some security in the background that takes care of all eventualities. They can take a tracker, which are at present priced some 0.5% better than their fixed rate counterparts, benefit from predicted future falls in rates, and buy insurance to cover the unexpected. If you want to protect against a potential 1% rise in your rate, cover effectively costs around £55 per month per £100,000 insured for an interest only mortgage, putting another 0.66% on the rate you pay each year. As such, it is a really about taking a decision on future rate movements. I would strongly advise people to seek professional help before deciding if this is the right route for them."

Large loan? Fret ye not

"Borrowers with large mortgages have found themselves ostracised of late, with lenders viewing them with some degree of distain. Our new exclusives, launching this week, will now allow borrowers with mortgages up to £5 million to obtain a competitive rate. The range starts with a rate of 4.99%, but does come with a fee of 3%. However, this product has no Early Repayment Charges and will certainly suit borrowers who want to keep their payments low and their options open. Borrowers should contact Charcol for full details on this and the entire range."