Brits choose ’stability’ when renewing mortgages
November 29, 2007 by admin
Filed under News, News-Mortgages
Millions of Brits would opt to fix their mortgage rate for five or more years if they needed to renew it, it has emerged.
Recent research by Abbey Mortgages has revealed that one in three (5.1 million) homeowners would choose a fixed rate of interest, with the need to know monthly outgoings the main reason for doing so.
The number of people wanting to opt for a five year fixed rate was greater even that the once favourite two-year fixes.
Head of mortgages at Abbey, Nici Audhlam-Gardiner, commented: “You never know what’s going to happen in the future, but at least if you’ve committed to a long term fixed deal, you know where you are going to stand with your repayments.
“Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything.”
Meanwhile, the number of homeowners choosing tracker mortgages was up to 12 per cent, although around eight per cent of respondents said they prefer to fix as they do not fully understand how tracker mortgages work.
