Fixed-rate mortgages popular with homeowners

Fixed-rate mortgages popular with homeowners

Fixed-rate mortgages are set to grow in popularity because the base rate was held rather than cut last month, Abbey claimed this week.

Research by the mortgage lender found that the number of people who believe the base rate has fallen as low as it will go has doubled in the past month.

Meanwhile, the number of homeowners holding out for a lower base rate before they remortgage has plummeted from 3.1 million (17%) to 1.3 million (7%) in the past two months.

Abbey recently extended its range of fixed-rate mortgages to cope with the expected increase in demand.

Nici Audhlam-Gardiner, director of mortgages at the bank, said: “In the last few weeks, we have extended our range so there is something to suit every borrower whether they are remortgaging, moving house or making their first step onto the ladder.”

Mortgage broking firm John Charcol recently advised homeowners to opt for a fixed rate mortgage because it believes fixed rate mortgage pricing has reached it lowest point for the current cycle.

In related news, Abbey this week reported its results for the first quarter of 2009, with pre-tax profits up 25% compared to the year ago period.

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