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Fixed rates proving popular

Fixed rates proving popular

Category: Mortgages

Updated: 23/03/2009
First Published: 23/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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."

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