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Fixed rate mortgages doubled

14/06/2007

New data shows that fixed rate mortgages can be taken out without any down payments. Since 2006 it clearly shows that majority of homeowners are confortable with a fixed rate product.

Moneyexpert.com feel that because first-time buyers are on a high budget, 100% mortgages will only increase more and more each month. This product has become more popular since the interest rate increased.

Sean Gardner at MoneyExpert commented, "Often it's the youngest applicants who are worst affected by high interest rates as getting onto the property ladder becomes more difficult."

"Affordability is the buzz word at the moment as lenders look to find new ways to bring first-time buyers into the property market. Offering 100% mortgages is another example of this, as saving for a deposit on even the average property can take years," he added.

100% fixed-rate mortgage deals have a average charge of 6.49 per cent interest. Evaluating this data it leaves a total of 0.6 percentage, this more than the same month 2006 period, however less than the one percentage point increase via the Bank of England’s base rate.


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