Buyers 'shun' fixed-rate mortgages

Date:Tuesday 15th December 2009
Author: Max Freedman

Buyers are increasingly deciding against taking out fixed-rate mortgages, according to a report from Mortgageforce.

Month on month, the number of people who have taken out fixed-rate loans has dropped by an estimated nine per cent of the market share.

As a result, the products only accounted for 29 per cent of all the purchases and remortgages made in November.

Katie Tucker, technical manager for Mortgageforce, said: "The choice between a fixed rate and a variable rate is more personal now than ever; the advantage in the price difference is cancelled out by the likelihood of Bank rate being increased in the next two years."

She advised that individual buyers should choose their rate based on their own ability to afford an increase in variable rate loans.

Mortgageforce reported earlier in the month that first-time buyers were on the increase, with them accounting for 14 per cent of their transactions during November, compared to the typical ten per cent of the market they usually make up.