CML: Fixed-rate mortgage numbers 'growing'

www.moneynews.co.uk > Mortgages > CML: Fixed-rate mortgage numbers 'growing'

CML: Fixed-rate mortgage numbers 'growing'

Tue 10th Apr 2007

Predicted interest rate rises are causing prospective homebuyers in Britain to take out fixed-rate mortgages in ever increasing numbers.

Research carried out by the Council of Mortgage Lenders (CML) shows that 87 per cent of consumers investing in bricks and mortar for the first time chose such a product in February 2007.

This was compared to the previous record of 84 per cent in January and 82 per cent in the same month of 2006.

Compared to the two-thirds who did so in January 2007, some 70 per cent of all homebuyers took out a fixed-rate package in February.

CML director general Michael Coogan said: "With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed-rate deals and locking into the payment security they provide.

"First-time buyers are the most financially stretched group and the fact that a record number of them are choosing a fixed-rate deal demonstrates their desire to plan ahead and avoid the risks interest rate rises would bring."

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase