First-time buyers are choosing fixed-rate mortgages over all other loan products, according to a recent survey by the Council of Mortgage Lenders (CML.) The fresh trend likely comes about following further interest rate increases by the Bank of England.
According to the CML, as many as 85 per cent of first-time buyers in the UK have chose fixed-rate mortgage deals over the course of January, which according to them is the highest proportion on record.
The CML also pointed out that the average rate of interest on these mortgages was 5.27 per cent. This follows three interest rate increases since August last year, which have all driven the cost of borrowing higher.
The director general of the CML indicated that he thought interest rates were likely to rise again, and more first-time buyers protecting themselves with fixed monthly mortgage repayments could only be a good thing.
A number of top mortgage lenders are starting to introduce cheap fixed-rate loans, including Abbey and Alliance and Leicester .
First-time buyers opting for fixed-rate mortgages
Financial Services
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First-time buyers opting for fixed-rate mortgages
Wed, 14 Mar 2007
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