Mortgage News
Borrowers have little interest in fixes: Mortgageforce
Borrowers are becoming less interested in fixed-rates deals every month, with take-up of fixes falling by an average of 11% every month since June.
Fixed rates accounted for only 29% of all purchases and remortgages in November, dropping from 75% in June.
Katie Tucker, technical manager for Mortgageforce said that the choice between a fixed rate and a variable rate was becoming more personal now than ever.
She explained: “The advantage in the price difference is cancelled out by the likelihood of bank rate being increased in the next two years. This means borrowers should firstly take whole of market advice to ensure the best selection is available to them, and secondly, choose their rate based on their own personal ability to afford potential increases in the rate in the next few years.”
She added: “A tracker is not for you if you suspect you’re not disciplined enough to overpay in the short term while your contracted payments are low, or if you would struggle if your monthly payment increased by about another quarter in a year’s time.”
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