Homebuyers choose fixed-rate deals
Homebuyers are taking on fixed-rate
mortgages simply because
interest rates are rising each year.
New research carried out by moneysupermarket.com shows that many
homebuyers are opting for three to five-year fixed
Nobody can control the market Cuming suggests; there is still
doubt among homebuyers, particularly with the latest credit crunch.
Head of mortgages, Louise Cuming at moneysupermarket.com, commented:
'People are now looking for longer peace of mind and the research
supports the lack of confidence they have with interest rates.'
Conventionally, short two-year fixed rates have always been popular,
generally because lenders present the finest rates over this
time. However 21% are opting for one to two-year fixes compared
with 27 per cent for 3-5 year deals. The amount is even greater
for first-time buyers who rate this medium-term security.
Managing director from Mortgage Force, Rob Clifford spoke further: ‘Rates
are only around 6% even for five years of security you can see
why first-time buyers are grabbing as long a period of guarantee
as they can.’
Free Mortgage Enquiry