11
Aug
Homebuyers opt for fixed-rate loans
The popularity for fixed-rate loans among homebuyers looking for
houses for sale in the UK has grown.
This is according to recent figures released by the Council of
Mortgage Lenders (CML) for June.
Findings revealed that 28 per cent of new borrowers opted for a
fixed-rate loan, representing the highest proportion of people
taking out this type of mortgage during the first six months of
2010.
While fixed-rate loans were thought to be an unpopular choice for
homebuyers throughout the year as a result of a low bank rate of
0.5 per cent, figures suggest that people are beginning to opt for
a more secure mortgage in case the rate rises.
Yesterday (August 10th), Yorkshire Building Society's Tom Girling
stated that fixing mortgages can give homebuyers "peace of mind"
over future repayments.
June also saw an increase in the total number of people looking to
borrow money to buy a new home, which will come as a good sign for
homeowners keen to sell.
CML economist Paul Samter said: "The effects of government spending
cuts have yet to make an impact on mortgage demand and activity
continues on its upward trajectory."
