12 Jun

CML reports rise in demand for fixed rates

CML reports rise in demand for fixed rates

The number of borrowers choosing fixed-rate mortgages in April was at its highest level for nearly a year, it has been revealed.

According to the Council of Mortgage Lenders (CML), 69 per cent of people taking out a home loan opted for this type of product.

Not since June 2008 has the fixed-rate mortgage been so popular compared to other options, the group said.

It comes as the CML reported a "modest improvement" in the overall number of mortgages approved for house purchases in April. A similar pattern was recently noted in the Bank of England's latest mortgage approval data.

CML head of research Bob Pannell remarked: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer-term periods of five to ten years."

Shorter-term fixed rates are proving less popular than "attractively priced variable-rate deals" as it is widely expected that the cost of borrowing will remain low in the near future, he added.

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