Increasing Numbers Turning To Fixed Rate Mortgages

 

Andy Pratt, the chief operating officer at Alexander Hall, has claimed that first time buyers and existing property owners are increasingly seeking fixed rate mortgages as an attractive alternative to other financing options. This rising popularity is set to continue in the coming months.

He made clear that the rising popularity of course will only be sustained according to the opinions of the customers, along with the advice over the markets that the brokers deliver. However, he also noted that many people foresee an increase in rates in the near future.

Mr Pratt’s comments came following a statement by Barclays, which detailed their plans to cut rates on a number of their residential mortgages, including a fixed rate, three year loan that will stand at 80% to value, a decrease from 4.68% to 4.13%.

Mr Hall also made comment, saying that "The rates that are being offered by lenders to try and gain market share are an attractive option to fix at. Most people would think that when the [interest] rate goes up over a couple of years, it would probably go past that point so, in that sense, they see it as a good safe bet."

He further asserted that he expects the number of people obtaining fixed rate deal to increase further before settling, this is especially so as the market will most likely observe to get a better understanding of how the fixed rates mortgages may change according to increases in the base rate.


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