Cheap mortgages: 48% of borrowers look to fixed-rate deals

A growing number of customers are looking at acquiring fixed-rate mortgages, with 48 per cent of borrowers in June taking out one of these deals, those looking for cheap mortgages may be interested to discover.

New figures published by the Council of Mortgage Lenders CML have shown that this is a change from trends earlier in the year where people were intending to maximise on the low mortgage rates.

The amount of house purchase lending rose during the period, with a 19 per cent rise in the volume of deals being agreed from May and 14 per cent year-on-year since June 2009.

Paul Samter, an economist with CML, has suggested that the government's spending cuts have yet to impact on mortgage demand, meaning the activity has continued to rise.

He said: "We still expect house purchase activity to be muted in the coming months. Both consumer demand and lending capacity remain distinctly difficult to call, especially in the light of the government's austerity measures and their possible impact."

Earlier this month, CML head of member and external relations Sue Anderson called on borrowers to look beyond the initial rate and to fully assess the mortgage options that are available for them.

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2010-08-11 13:23:39 © Moneyextra.com