Fixed rate mortgages 'will remain most popular'

Fixed rate mortgages will be more popular than tracker home loans in the coming months, an expert believes.
Fixed rate mortgages 'will remain most popular'
Fixed rate home loans will remain more popular than tracker mortgages among prospective property investors in the near future.

That is the view of Andy Pratt, chief operating officer at Alexander Hall, who believes mortgages with a set repayment figure will continue to be highly-sought after in comparison to packages linked to the Bank of England base rate.

Last week (August 4th), the Bank's Monetary Policy Committee opted to maintain interest rates at 0.5 per cent for the 29th month in succession and Mr Pratt noted that fixed deals will rise in popularity in the short term ahead of any potential change in this stance.

"The rates that are being offered by lenders to try and gain market share are an attractive option to fix at", he explained.

Recently (August 3rd), Barclays announced it has reduced figures attached to several of its fixed mortgage products, including a cut from 4.68 per cent to 4.13 per cent on its three-year 80 per cent loan-to-value package.

By Emma North