Homebuyers choose fixed-rate mortgage deals
A recent survey showed that majority of homeowners were taking on fixed-rate mortgage deals.
Moneysupermarket.com suggested that a vast majority of homebuyers were opting for three to five-year fixed rate mortgages.
There is no control of the market Cuming stated; there is still doubt among homebuyers, especially with current credit crunch conditions.
Head of mortgages, Louise Cuming at moneysupermarket.com, suggested: 'People are now looking for longer peace of mind and the research supports the lack of confidence they have with interest rates.'
Traditionally, short two-year fixed rates have always been popular, normally because lenders present the finest rates over this time. 21 per cent are going for one to two-year fixes leaving, 27 per cent with 3-5 year deals. The amount is even greater for first-time buyers who rate this medium-term security.
Director from Mortgage Force, Rob Clifford commented: ‘Interest rates are only around 6 per cent even for five years of security you can see why first-time buyers are grabbing as long a period of guarantee as they can.’
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