Fixed-rate mortgages growing in popularity


Thu 16th Aug, 12:29:47 BST

The number of fixed-rate mortgages being taken up across the UK continues to grow, according to the latest figures from the Council of Mortgage Lenders.

Fixed-rate deals accounted for 90 per cent of all mortgages for first-time buyers in June, a steady increase from 83 per cent in the same month of the previous year.

The new statistics also revealed that 76 per cent of Britons moving home in June took out a fixed-rate mortgage, again an increase on the 2006 figure of 63 per cent.

Commenting on the findings, Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors said: "This is further evidence that higher mortgage costs are beginning to impact on borrowers.

"Facing another rate hike, it is logical that new buyers are seeking to protect themselves by opting for fixed rather than variable mortgage products."

The CML also recently reported that the number of loans to first-time buyers declined to 35,600 from 39,800 in the same month of 2006, citing the five interest rate rises since August 2005 as a major factor behind the decline.



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