Fixed-rate mortgages still popular

Posted: 08 Jul 2008 13:18:21 GMT

Homeowners and first-time-buyers are still keen to go for fixed-rate deals despite rates climbing.

Homeowners and first-time-buyers are still keen to go for fixed-rate deals despite rates climbing.

Consumers are most keen to opt for a medium term fixed-rate mortgage whilst 25 per cent of those questioned by fairinvestment.co.uk said they would look for a short-term fixed-rate deal.

James Caldwell, director of the financial advice site commented: "Mortgage rates have continued to rise over the last few months, despite the Bank of England base rate either remaining the same or being cut."

He continued: "However, what goes up must come down, as we are seeing with house prices so there may be some hope for those facing a remortgage."

Only three per cent of those questioned said they would never go for a fixed-rate deal and 15 per cent said they would still choose a long term fixed-rate (ten to 25+ years) mortgage.

Ross Walker, economist at the Royal Bank of Scotland, said that he predicts "no change" in the interest decision due tomorrow (July 9th).

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