First-time buyers seeking fixed-rate mortgages

10/04/2007

CML the Council of Mortgage Lenders have stated that first-time buyers are looking deeply into fixed-rate mortgage deals.

February figures showed that 87% of first-time buyers were choosing a fixed-rate loan, this increase has started from 84% January period and 82% last year February period.

Home movers choose the fixed-rate option, this was 70% an increase, compared to last months figure which was 67%, CML feels there is a clear rise here.

CML concluded that, fixed–rate loans made up 76% of the total towards house purchase; this figure was the highest since November 2005.

CML feel that people are choosing the fixed-rate deal because it is a competitive rate compared to discounted, standard, tracker and variable-rate products, which has inflated by 0.5% leaving people choosing the fixed-rate deal.

Director at CML, Michael Coogan says: "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.

“First-time buyers are the most financially stretched group, and the fact that a record number of them are choosing a fixed-rate deal demonstrates their desire to plan ahead and avoid the risks interest rate rises would bring."

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