Fixed-rate mortgages have become more attractive

There have been an increasing number of borrowers taking out fixed-rate mortgages according to the Council of Mortgage Lenders (CML). For the month of June the latest statistics show that people taking out fixed-rate loans rose from 66 percent to 69 percent.

As falling swap rates allow lenders to lower the cost of borrowing its suggested by the CML that this will continue.

In the report it also shows that the salary multiples being paid for mortgages since May have decreased for home movers from 2.97 to 2.94 and for first time buyers from 3.35 to 3.33.

It’s also considered that a lot of people want to safe guard themselves from a possible Bank of England base rate rise, and like to have the security of knowing what their monthly payment will be for the term of their mortgage deal.

After today’s news of the consumer price index measurement of inflation rising to 4.4 percent, the monetary policy committee may have to raise the Bank of England Base Rate.

Pressure on the monetary policy committee to raise the rate may increase following today’s news that the consumer price index measurement of inflation has climbed to 4.4 per cent.

Source: hotproperty