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Secured loans holders 'want fixed rate'

Secured loans holders 'want fixed rate'

Category: Loans

Updated: 31/10/2008
First Published: 23/10/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
An increasing number of homeowners are seeking secured loans with a fixed interest rate, research has found.

The monthly Abbey Remortgage Index has shown that 56 per cent of consumers would opt for such a deal - a four per cent increase on the previous finding.

And despite the possibility of further cuts in the Bank of England's official base rate, just ten per cent would choose a tracker mortgage.

"Borrowers are not willing to gamble on a rate cut, instead they are more likely to opt for a medium-term fix which will provide them with some financial security," said director of Abbey Mortgages Nici Audhlam Gardiner.

In response, the bank is cutting its three-year fixed-rate by 0.15 per cent to 5.39 per cent tomorrow.

The Bank of England's decision to cut the base rate by 0.5 per cent marked the first time it had changed by more than 0.25 per cent since November 2001.

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