Fixed-rate mortgages 'at their peak'

Posted: 23 Jul 2009 15:01:40 GMT

Fixed-rate mortgages could be at their peak popularity among Britons buying property at present, it has been claimed.

Independent broker John Charcol notes that, in June, 83.1 per cent of its clients expressed a preference for fixed-rate mortgages.

This follows the decision by the Bank of England's monetary policy committee to maintain the base rate at its historic low point of 0.5 per cent.

However, in the coming months, John Charcol senior technical manager Ray Boulger predicts that the dominance of fixed-rate mortgages could begin to recede.

"We expect 83.1 per cent [of the market] will prove to be the peak for fixed rates for the foreseeable future," he says.

This, he adds, is due to the shift in pricing between fixed rates and tracker mortgages - which have become more attractive in recent weeks.

However, the preference for fixed-rate mortgages has so far prevailed, with 81.2 per cent of the firm's clients choosing them in the past four months.

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