29
Jun
More Brits 'choosing fixed rate mortgages'
New research has revealed that many homeowners are now opting for a
fixed-rate mortgage.
Figures released by Legal & General show that 87 per cent of
residential borrowers chose this type of loan, compared to 71 per
cent in the first quarter of the year.
It was also discovered that although the average two year fixed
rate increased from 4.7 per cent to 5.46 per cent, three, five and
ten year fixed rates all fell.
Stephen Smith, director of housing at Legal & General, thinks
that the high margins on variable rates have been discouraging
people over the past three months.
"Fixed rates had been offering the full package until recently, in
that they had been getting cheaper and they offer valuable peace of
mind in a turbulent and uncertain environment," he added.
Yesterday, Ray Boulger, senior technical manager at John Charcol,
suggested that the mortgage market has now stabilised.
