12
May
Borrowers opt for fixed-rates amid economic instability
Borrowers concerned about the instability of the housing market are
increasingly turning to the safety of fixed-rate mortgages, John
Charcol has stated.
A record 78 per cent of the mortgages sold by the firm in April
were fixed-rate products, compared to 64 per cent the previous
month.
In addition, John Charcol noted that first-time buyers only
accounted for four per cent of its customers last month, which is
less than half 2007's average of ten per cent and is down from
seven per cent in March.
Katie Tucker, a technical manager for the mortgage broker,
commented that mortgage choice has been "all but eradicated above
90 per cent loan-to-value".
In addition, she said: "The biggest lenders are charging interest
rates around three quarters of a percent higher for borrowers who
aren't supporting the purchase with at least a 25 per cent
deposit."
Recently the business development director of iammoving.com
suggested that first-time buyers should consider waiting until the
market has stabilised to get onto the property ladder.
