Consumers moving towards fixed-rate mortgages

The number of people choosing fixed-rate mortgages over variable rates has increased for the fourth month in a row.

Data from the Mortgage Advice Bureau MAB found that the percentage increased from 63.6 per cent in October to 65.7 per cent in November.

The latest figures for fixed mortgage rates show a significant increase from the 46.3 per cent of applicants choosing a fixed-rate in January 2010.

Brian Murphy, head of lending at MAB, said: "With the almost month-on-month reduction in fixed rate pricing during 2010, it is no surprise to see almost two-thirds of borrowers have gravitated towards fixed rates."

He added that consumer confidence still remains low due to uncertainty surrounding job losses and the economic recovery so consumers are more likely to opt for the safer fixed-rate option.

In terms of total mortgage applications, for buyers and those looking to remortgage, activity was up 23.4 per cent for the year to date compared to the same period in 2009.
 

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2010-12-17 13:44:31 © Moneyextra.com