Continued interest in fixed rate mortgages
Over recent months fixed rate mortgages have been rising in popularity with the threat of rising interest rates hanging over the heads of mortgage payers all across the UK.
At one point a number of lenders had to suspend the number of fixed rate deals on offer because there were so many consumers that wanted to take out this type of mortgage. And with the latest interest rate, which was applied by the Bank of England just a couple of weeks ago, there has been a fresh flood of interest in fixed rate mortgage deals.
According to officials from the Mortgage Trust consumers in the UK are now taking out more fixed rate mortgages than ever before as a result of four interest rate rises in the space of a year, with further rises on the horizon according to analysts and economists. The Bank of England raised interest rates in August and November last year, and then again January and May of this year, taking the rate from 4.5 percent last August to 5.5 percent by the middle of this May.
Fixed rate mortgages have become hugely popular amongst first time buyers that want to enjoy stable repayments without having to worry about further interest rate rises. They are also popular with those that want to remortgage and go from a variable rate mortgage to a fixed rate deal. And finally, even buy to let landlords are taking advantage of fixed rates in order to enjoy stabilized repayments.
One spokesperson for the Paragon Group, of which the Mortgage Trust is a part, stated: "Our research also shows that an even higher proportion of landlords have been taking out fixed-rate loans. 78 per cent of landlords have been opting for fixed-rate mortgages in recent months."
6th June 2007
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