First time buyers 'increasingly' opt for fixed rates

26-Mar-2007

First time buyers are increasingly opting for fixed-rate mortgages, a new survey has revealed.

According to data released by The Motley Fool, nine out of ten first time buyers are taking fixed-rate mortgages - as of January 2007 - compared with four out of ten homeowners in August 2006.

Indeed, although interest rates are currently at 5.25 per cent, a further rise is expected.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

"Fixed-rate mortgages are the best way for homeowners to insulate themselves from rate rises," said David Kuo, head of personal finance at The Motley Fool.

"It's ideal for people who need to know where they stand financially from pay packet to pay packet," he added.

In August 2006, eight out of ten first time buyers took out a fixed-rate mortgage.

The Motley Fool offers financial comparisons on a number of differing products, including current accounts and loans.

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