Borrowers Prefer fixed rate mortgages
May 14th, 2008 by 
Guy
Borrowers are preferring the  security by opting for fixed rate mortgage deals, the latesest figures show.
According to experts , 78 per cent of of new mortgages were arranged on a fixed rate deal in April this year.
Commenting on the findings Kevin Paterson, technical manager, said: These peaks normally happen when interest rate rises are expected, but as the Bank of England base rate is expected to fall over the next year most borrowers preferred fixed rates even though they were a quarter to a half a percent cheaper than trackers.
He also added that such a large up take of fixed rate mortgages must  indicate that people are duly concerned that interest rates will increase in the near future, although such a situation is unlikely.
Last week various sources predicted that interst rates will be cut to 4.75 per cent in June.
Posted in Mortgage news | 