Expert: Opt for combination tracker and fixed-rate mortgages

People confused about the kind of mortgage they should go for have been offered advice by one financial expert.

Rob Simpson, managing director at Simpson Financial Services Limited, explains that potential home owners need to be cautious and hedge their bets about future changes in interest rates.

As a result, the best option is likely to be a mortgage that has both tracker and fixed-rate elements to it.

However, he draws attention to the fact that many lenders may have high arrangement fee charges, but these are "all part of the value of advice".

Mr Simpson says that as long as "you don't end up paying too much in arrangement fees", this could be a very attractive option.

In other mortgage news, Nationwide has just announced that it is to reintroduce its 125 per cent mortgage option.

This is aimed at customers who are trapped in negative equity but are keen to move home.