Vast majority of borrowers 'opting for fixed-rate mortgages'

Date:Wednesday 24th June 2009
Author: Susanna Kavka

The vast majority of property owners in the UK are opting for fixed-rate mortgages, it has been claimed.

According to figures produced by Legal & General, 87 per cent of borrowers have chosen such home loans so far during the second quarter of this year.

This represents a rise on the 71 per cent who chose fixed-rate mortgages during the first three months of 2009.

Stephen Smith, director of housing at Legal & General, stated: "Fixed rates had been offering the full package until recently, in that they had been getting cheaper and they offer valuable peace of mind in a turbulent and uncertain environment."

However, he added that many fixed-rate home loans are now rising in cost.

Recently, echoed this belief, stating that the average rate charged on such mortgages increased by 0.21 per cent over the course of last week.

Analyst at the firm Michelle Slade suggested that lenders are "stumbling over each other" to raise costs.