Fixed-rate mortgages 'popular'

Posted: 12 Jun 2009 10:18:54 GMT

Fixed-rate mortgages were the choice of 69 per cent of borrowers in April, according to the latest figures.

The Council of Mortgage Lenders (CML) has revealed that this type of home loan had the largest share of the market for almost a year.

It suggested that fixed rates have not been so popular among UK home buyers since June 2008.

Overall, the CML reported a "modest improvement" in the total number of mortgages approved for house purchases during the month - a similar trend was noted by the Bank of England's latest data on home loans.

Head of research at the council Bob Pannell said: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer-term periods of five to ten years."

The CML representative also claimed that shorter-term fixed rates have been less popular than "attractively priced variable-rate deals" since it has been widely predicted that the cost of borrowing will remain at 0.5 per cent for some time.


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