research reveals Britons want fixed rate mortgages
on: February 21, 2008, 8:15 am
Release Author: Fairinvestment.co.uk
Release Summary: New research from Fairinvestment.co.uk has revealed
that when looking for a new mortgage, 57 per cent of Britons stated
that they would prefer to choose one that had a fixed rate, rather
than any other mortgage product type
Release Body: New research from Fairinvestment.co.uk
has revealed that when looking for a new mortgage, most Britons
stated that they would prefer to choose one that had a fixed rate,
rather than other mortgage products.
survey revealed that 57 per cent of the Britons sampled would choose
rate mortgage. These results consisted of 30 per cent of the
total respondents reporting that they would favour a short-term
fixed rate mortgage while 27 per cent would opt for a long-term
fixed interest rate.
fixed rate deal allows homeowners the security of knowing what their
monthly repayments will be and therefore to budget accordingly,
safe in the knowledge that they are protected from any rises in
the Bank of England base rate", said James Caldwell, director
survey also found that 23 per cent of homeowners would favour a
mortgage, nine per cent would opt for a discounted mortgage,
eight per cent would chose a variable
rate mortgage and three per cent would go for a stepped deal.
believes that the nation's choice to play it safe with
a fixed rate is illustrative of the currently uncertain economic
outlook as the Bank of England attempts to stem inflation at a time
when the Council of Mortgage Lenders has announced
recently that in 2007 there were 27,000 homes repossessed.
public are obviously wary of exposing themselves to the economy
at large and are acting accordingly, with a high proportion of people
opting for fixed rate mortgage deals", stated Mr
Caldwell, "Despite two base rate cuts in the last
two months, people are looking for certainty in their personal finances.
With a large number of people coming out of existing fixed rate
arrangements back onto lender variable rates, many people are keen
to re-fix their mortgages."
continued, "While it is understandable that homeowners
want to protect themselves from economic uncertainty, opting for
a fixed rate mortgage means that they do not benefit from any further
drops in interest rates."
the minutes from the January meeting, the Monetary Policy
Committee (MPC) considered "the international economy;
money, credit, demand and output; and supply, costs and prices."
in making their decision for the February base rate, demonstrating
that there are a lot of factors contributing to the outcome.
have had to contend with a rising cost of living, as food and energy
prices soar, and the Bank of England is reluctant to make drastic
rate cuts, in order to try and stall inflation, so a changeable
mortgage repayment might not allow homeowners the stability required
to ensure that they can meet their monthly expenditures",
Mr Caldwell concluded.
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