29 Jun

More Brits 'choosing fixed rate mortgages'

More Brits 'choosing fixed rate mortgages'

New research has revealed that many homeowners are now opting for a fixed-rate mortgage.

Figures released by Legal & General show that 87 per cent of residential borrowers chose this type of loan, compared to 71 per cent in the first quarter of the year.

It was also discovered that although the average two year fixed rate increased from 4.7 per cent to 5.46 per cent, three, five and ten year fixed rates all fell.

Stephen Smith, director of housing at Legal & General, thinks that the high margins on variable rates have been discouraging people over the past three months.

"Fixed rates had been offering the full package until recently, in that they had been getting cheaper and they offer valuable peace of mind in a turbulent and uncertain environment," he added.

Yesterday, Ray Boulger, senior technical manager at John Charcol, suggested that the mortgage market has now stabilised.

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