Fixed Rate Popularity

Fixed-rate mortgages had a good showing during April, during which period they made up 71 per cent of all approvals, according to the latest figured from the CML(Council of Mortgage Lending). This is a rise of two per cent compared to the previous month, and a whole seventeen per cent up on the same period last year, showing that fixed rate mortgages are continuing to find favour with borrowers.

This growth in popularity is down to the security fixed rate deals provide against the murmerings of an interest rate hike being on the cards for some point in 2006, combined with a market that very competitive at present.

Fixed rate deals are beginning to see their rates slowly rise, as lenders are seemingly preparing for the expected base rate rise, having only a few months back been slashing rates after the base rate cuts of last August, and the then widespread belief that further cuts were on the cards.

The popularity in this type of mortgage is well founded, as over the past eight months since that last rate cut, fixed rate mortgages have proved to be the better performers in the market. Continued take up is expected, as consumers like the security that the fixed rate offers, and the forecast of a rate rise is adding to this.