Britons 'prudent' over mortgage uptake

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Britons 'prudent' over mortgage uptake

Wed 30th May 2007

Britons are becoming more prudent than ever in terms of their mortgage repayments in a climate of increasing interest rates, new research shows.

Figures from Yorkshire Bank show that almost a quarter of Britons say they are looking to avoid taking out a maximum mortgage.

Nearly a third of consumers are also looking to avoid stretching their finances more generally for fear of further interest rate rises in the near future.

Only three per cent of respondents in a poll said they were looking to cut repayment costs by scouring the market for the cheapest product available.

More than a quarter of first-time buyers looking to get on to the property ladder in coming years say they are looking to take out a fixed-rate mortgage.

Gary Lumby, head of retail at Yorkshire Bank, said: "With rises in the Bank of England's base rate and with many economists predicting a further rise if not next month, then in the near future, it is inevitable that homebuyers will become more a little more cautious with their borrowing."

The Bank of England's monetary policy committee has increased the interest rate four times since August 2006.

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