CML: Fixed-rate mortgages ‘most popular’ with FTBs
April 10, 2007 by admin
Filed under News, News-Mortgages
The number of people looking to take out fixed-rate loans has soared following fears that interest rates could rise next year, according to the Council of Mortgage Lenders (CML).
First-time buyers (FTBs) have been plumping for fixed-rate loans in February, with figures showing 87 per cent of those looking for a mortgage for the first time opting for this method of borrowing.
This figure is up from the previous record of 84 per cent in January and up from 82 per cent at the same point last year.
Excluding mortgages, home loans totalled some £10.7 billion – the lowest for 12 months – with February typically being one of the quietest months of the year in the property market.
Commenting on the latest figures, CML director general Michael Coogan said: “With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed-rate deals, and locking into the payment security they provide.”
He added that the figures reveal that first-time buyers are showing the ability and desire to plan ahead, based on the fact that they are “the most financially stretched group”, and are having to take careful steps to avoid any interest rate increases in future.
