Fixed rate mortgages 'becoming more popular'

Fixed rate mortgages are becoming more popular, it has been said.
Fixed rate mortgages 'becoming more popular'
Fixed rate home loan deals are more popular among Britons than their tracker mortgage counterparts at present.

That is the view of Ben Wilkie, editor at What Mortgage, who has said that a growing number of people are now opting for the security of fixed deals as opposed to the flexibility of packages linked to the base rate as they are aware that the Bank of England is likely to increase this figure sooner rather than later.

Mr Wilkie explained that homeowners see fixed rate mortgages as an opportunity to "protect themselves" against paying increased rates in the future.

He advised individuals approaching the end of their current home loan product to make sure they are ready to absorb increased interest rates in the coming months.

This follows on from Jim Munson, head of marketing at Metropolitan Home Ownership, commenting that conditions for first-time buyers are likely to improve over the next year.

By Joe Letts