Increased popularity for cheaper fixed rate mortgages
March 5, 2009 by admin
Filed under News, News-Mortgages
Recently released figures have suggested that new lower fixed rate mortgages may be gaining popularity again, with borrowers keen to take up lower rate deals yet enjoy stable repayments for a fixed period of time to help them to budget more easily in the current difficult financial climate.
The base interest rate is now at its lowest level in the history of the Bank of England, standing at just 1 percent following a series of base rate cuts over the past five months.
Some banks have now launched competitive fixed rate mortgage deals in response to the recent rate cuts, and for those that do want to have to worry about fluctuating mortgage repayments each month these mortgages are providing an effective alternative to the lenders’ standard variable rate mortgage deal. Officials claims that the two year fixed rate mortgage is proving a popular choice, with a number of lenders launching competitive deals.
Many homeowners and property purchasers have been opting for the lenders’ standard variable rate mortgages since the base rate started to fall last October, with many hoping that they would benefit from the rapidly falling rate. However, now that the base rate is so low and a number of fixed rate deals for under 4 percent are coming onto the market, some homeowners are looking to fix their repayments at these competitive rates to make it easier to manage their finances.
Officials from the Council of Mortgage Lenders have recently stated that despite the falling interest rates, and expectations that the base rate could fall to as low as zero over the course of this year, over 50 percent of homeowners were still opting for the security of a fixed rate mortgage to ensure that they repayments remain stable each month for a period of time.
Tags: bank, Mortgages, deal, bank of england, fixed rate mortgages, rate deals, finance, council of mortgage lenders
