Fixed rate mortgages are continuing to be the most popular choice for house buyers, accounting for 71% of all loans. Figures from the Council of Mortgage Lenders has also shown that tracker and standard variable rate mortgages have remained the same at 15% and 3% respectively.
The Council of Mortgage Lenders believe the growth in the amount of fixed rate mortgages is because of the attractive deals being offered by lenders, and a preference by borrowers to lock into low rate, long-term deals. The report found that the amount of loans to first time buyers stood at 30,700 in April this year, down from 35,000 in March, and the average loan size increased to £106,400 in April, which is the largest increase since records began.
Our view
Interest rate rises are expected and given a potentially volatile employment market, it is understandable that people are cautious an dlocking into rates.
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