Fixed-rate mortgages continue to gain popularity
Published On 11 March 2008
More and more homeowners are opting for fixed-rate mortgages, a new study has indicated.Figures released by Abbey showed that 35 per cent of people questioned in March said they would opt for a fixed-rate mortgage - up from 31 per cent in February.
In particular, consumers said that they would look for five-year fixed-rate deals, despite the fact that many expected interest rates to drop in the coming months.
"The findings from our latest re-mortgage index show that the appetite for fixed-rate mortgages remains high despite widespread agreement that rates have further to fall this year," commented Nici Audhlam-Gardiner, director of Abbey Mortgages.
"We expect that economic uncertainty is contributing to this trend as people try to take control over their outgoings."
Recently, uSwitch reported that the average interest rate available on a two-year fixed-rate mortgage has increased from 5.23 per cent to 5.85 per cent since the start of the year.
The consumer site said that this meant that the average monthly mortgage payment in the UK had climbed from £940 to £1,025.
