Borrowers seek mortgage security

Posted: 21 Feb 2008 11:55:47 GMT

New research suggests that the majority of British borrowers would prefer to take out a fixed-rate mortgage rather than any other type of deal.

New research suggests that the majority of British borrowers would prefer to take out a fixed-rate mortgage rather than any other type of deal.

The Fair Investment Company (FIC) has published a study, revealing that 57 per cent would opt for a fixed-rate.

In addition, 30 per cent of all respondents said that they would like to take out a short-term fixed-rate mortgage, while 27 per cent would prefer a long-term deal.

Commenting on the results, James Caldwell, FIC director, said that they show people are seeking security in uncertain times.

"A fixed-rate deal allows homeowners the security of knowing what their monthly repayments will be and therefore to budget accordingly, safe in the knowledge that they are protected from any rises in the Bank of England base rate," he explained.

"The public are obviously wary of exposing themselves to the economy at large and are acting accordingly, with a high proportion of people opting for fixed-rate mortgage deals.

"Despite two base rate cuts in the last two months, people are looking for certainty in their personal finances," continued Mr Caldwell.

Abbey recently published a study which revealed that many Britons are confused about which type of mortgage to take out.

© Houseladder Ltd