Consumers still interest in fixed rate deals
June 19, 2007
Despite the fact that interest rates on fixed rate mortgage have gone up again, consumers still seem to be registering a great deal of interest in this type of loan.
The four interest rate rises that have been enforced by the Bank of England over the past year have resulted in many homeowners and first time buyers looking at fixed rate mortgages and remortgages, and at one point there were so many people demanding these mortgages that a number of lenders have to suspend fixed rate deals and take them off the market.
Recent figures indicate that although fixed rates on mortgages have risen again recently in line with the Bank of England base rate rise, many consumers are still flocking to try and take out these deals. This is partly due to the predictions made by analysts and economists with regards to another interest rate rise being likely in the summer.
It is also because many consumers have felt the pinch of four interest rate rises in the space of a year, and now wish to try and enjoy some financial stability and avoid the pinch of further rises.
Consumers from all walks of life have expressed interest in these fixed rate mortgages, including first time buyers, homeowners that are looking to remortgage and find a more affordable deal, and even buy to let landlords.
One official 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.”
The Mortgage Trust released figures recently that indicated that consumers were showing more of an interest in fixed rate mortgages than ever before.
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