UK near bottom of fixed-rate mortgage market, expert says

Date:Monday 30th March 2009
Author: Max Freedman

The UK is currently near the bottom of the fixed-rate mortgage market, one expert has attested.

Commenting on the issue, Melanie Bien of Savills Private Finance said that homeowners looking for security would be wise to seek longer-term home loans as soon as possible.

According to the expert, five-year deals represent the best opportunity for such people.

She added: "The cost of wholesale borrowing is expected to rise, which lenders will soon be forced to pass on to mortgage customers."

Ms Bien went on to suggest that lenders could begin pushing up the costs of their fixed-rate products as early as this week.

Statistics released recently by Legal & General revealed that the popularity of fixed-rate mortgages is rising among British consumers.

The firm claimed that 72 per cent of residential mortgage applications made through its Mortgage Club during the first three months of this year were for fixed-rate products.