Now more fixed-rate
mortgages applied due to rising interest rates
This information has been put forward
by the Council of Mortgage Lenders (CML) and they have stated
that first-time buyers are applying for fixed-rate loans.
In January over 85 per cent of first-time
buyers applied for a fixed-rate mortgage, this was the highest
figure by CML since the last 12 months – further more another
70 per cent of home movers choose the fixed-rate mortgage.
CML director, Michael Coogan stated,
"Increasing numbers of people - especially first-time buyers
- are opting for a fixed-rate mortgage. "
He added, "Each month it seems
that the prospect of another interest rate rise is balanced on
a knife edge. More and more borrowers are protecting themselves
against this risk and choosing the certainty of fixing their monthly
mortgage payments, which allows them to plan ahead with confidence."
In January all new home loans were
up to 72 per cent and these were all fixed-rate mortgages. This
was the greatest conclusion in 1 year and up from 69 per cent
Comparing January with Decemeber
there was a 11 per cent decrease in the number of mortgages taken
out by people. However December being low, 6 per cent extra mortgages
were applied for by home movers than in the current month last
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