Resurgence of fixed-rate mortgages 'linked to uncertainty'

Date:Wednesday 16th June 2010
Author: Max Freedman

A representative from John Charcol has claimed that renewed interest in fixed-rate mortgages is down to uncertainty - both economic and political.

Director of marketing at the firm Drew Wotherspoon highlighted how there are some "excellent" deals available if people are willing to fix for five or ten years.

The John Charcol mortgage index for May showed that 26 per cent of borrowers chose a fixed-rate home finance arrangement and Mr Wotherspoon noted this is the highest level for more than six months.

In his view, the increased interest in such products is down to uncertainty in the political and economic landscape and he expects the trend to continue in the coming months.

"The Sword of Damocles is currently hanging right above the UK and no one can really be confident that it won't fall soon," added the mortgage expert.

Last week, the company suggested that some people may be able to cut the amount they pay each month by taking on an offset mortgage.