First time home buyers opt for fixed rates in 'record numbers'

11-Apr-2007

First time home buyers are taking out fixed-rate mortgages in record numbers, new research suggests.

According to data released by the Council of Mortgage Lenders (CML), in February 2007 fixed-rate mortgages were taken by 87 per cent of first time home buyers, compared with 82 per cent during the same period in the previous year.

"With the chance of at least one more interest rate rise this year, first time buyers are taking the sensible option of taking out fixed-rate deals," said Michael Coogan, director general of the CML.

"First time buyers are the most financially stretched group," he added.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

Additionally, during February the number of home buyers who opted for a fixed-rate mortgage deal was slightly lower at 70 per cent - an increase of three per cent from the previous month.

The CML is a UK-based trade association for Britain's mortgage lending sector.

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