12 May

Borrowers opt for fixed-rates amid economic instability

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.

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