Fixed-rate security lures mortgage customers

23 April 2007
Fixed-rates are Britain's most popular mortgage type, a new study from has revealed, as growing numbers of homeowners opt to protect repayments from fluctuations in the base rate.

On the back of three successive rate rises and as financial analysts widely predict a potential fourth in May, 51 per cent of people are safeguarding their finances by choosing fixed-rate products.

Moreover, more than a quarter of people are pegging repayments to a fixed rate over a relatively short time-frame, choosing two or five-year fixed-rate products.

But older, more financially stable borrowers appear to be opting for longer-term fixed-rate commitments on a five to ten-year basis, commented's head of mortgages, Louise Cuming, creating regional variations.

Overall, the study found that 42 per cent of people in the UK have a mortgage.

According to a recent survey from the Council of Mortgage Lenders, UK mortgage borrowers are taking out more than ever before, as figures show the highest-ever lending figure for March.

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