More people choosing fixed mortgage rates

More people are opting to protect their mortgage rates from future rises by choosing a fixed deal, according to What Mortgage.

Ben Wilkie, editor at the advice website, said that most people are aware that interest rates will rise and are opting for a fixed-rate mortgage to ensure their monthly payments do not increase.

He said this may also be a wise move for people on fixed mortgage rates which are nearing the end of their term, to prevent facing a "payment shock".

"With interest rates, there is only one way they can go – they can only go up. Eventually mortgages are going to start costing more, so a lot more people are now looking to fix their rate and protect themselves against those increases," he said.

Figures from the Council of Mortgage Lenders revealed that gross home purchase lending in February remained largely unchanged from January and year-on-year at £9.5 billion.

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2011-03-21 13:02:15 © Moneyextra.com