First time buyers turning to fixed-rate mortgages

14-Jun-2007

First time buyers are increasingly turning to fixed-rate mortgages because of the perceived stability that they offer in the current financial climate, it has been advised.

Four interest rate rises in the past ten months have meant that fixed-rate deals are now selected by the vast majority of first time buyers, the Council of Mortgage Lenders (CML) has advised.

However, CML spokesperson Christopher Dean said that buyers should not automatically rule out variable-rate deals based on take-up levels alone.

"In April, 88 per cent of first-time buyers took out a fixed rate mortgage, so that indicates to us that first-time buyers are clearly wanting to lock into the payment security that a fixed rate deal offers," Mr Dean commented.

"[Choosing a deal[all depends on the borrower's individual circumstances and what would be best for them at their time of life," he cautioned.

Figures released by the CML earlier this week have shown that mortgage interest payments have rise to their highest levels for 15 years.

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