Fixed-rate mortgage popularity booms
Published On 8 October 2006
August's interest rate rise has had the knock on effect of a boom in fixed-rate mortgage products.Recent figures from Mortgages Direct have shown a 20 per cent jump in the level of fixed-rate mortgage products.
The Bank of England's monetary policy committee opted to raise interest rates quarter point to 4.75 per cent in August this year.
Peter Gladdy, Mortgages Direct dirctor, said: "Immediately after the interest rates increased in August we saw the proportion of two-year fixed-rate deals rise as borrowers became more concerned about further rate rises in the next few months.
"In September, the popularity of fixed-rate mortgages continued to remain high but a greater percentage of homeowners are now opting to secure a fixed rate mortgage for a longer period.
"Consumers seem to have a bleak outlook on the long-term stability of the housing market economy."
At present the most popular type of product is the two-year fixed rate mortgage which comprised 70 per cent of all mortgages taken out in September.
