Take up of fixed-rate mortgages predicted to fall again

Date:Friday 28th August 2009
Author: Susanna Kavka

The share of fixed-rate mortgages compared to standard-variable-rate deals fell in July and is predicted to fall again in August.

There was a ten per cent fall to 54.6 per cent in the market share of fixed-rate mortgages from June to July, according to figures from the John Charcol Index, which measures the split between the two forms of lending.

Ray Boulger, a spokesperson for the organisation, has estimated that this number will fall below 50 per cent in August[comma] which[a shift] he feels is a reflection of the changing views on how long interest rates will stay low.

He said: "It also demonstrates the value of advice and that many clients want advice on the fundamental question of whether to take a fixed or floating rate."

The Bank of England's decision to extend its quantitative easing programme has also affected the take-up situation, he suggested.

Earlier this month, Mr Boulger spoke about the lack of equity in as many as 35 million people's property, which is restricting their access to mortgage finance and their capacity to for move house.