Borrowers are increasingly opting to fix their mortgage as the average fixed rate continues to drop. 72% of residential borrowers chose a fixed rate in the first quarter of 2009, compared with 65% in the final quarter of last year, according to research conducted by Legal & General. Meanwhile, 68% of buy-to-let borrowers fixed their rate in the first three months of this year compared with just 43% in the previous quarter. "Fixed rate pricing has only really started to come down in the past few months, and even then only for those borrowers with a hefty deposit," said Stephen Smith, director of housing. "However, fixed rates are very much back in favour, partly because lenders have been increasing the margins on their new tracker mortgages."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.