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4
Mar
More security on fixed rates
A large number of first time buyers (FTB's) are
opting to take out fixed rate mortgages.
The reason, according to the Moneysupermarket, is enjoying the
peace of mind that comes with these deals.
Getting onto the property ladder, the FTB's often stretch
themselves to the limits, this way, for the fist couple of years of
homeownership they do not have to worry about rising rates.
Louise Cumming from Moneysupermarket said the following of the
FTB's "There's absolutely no doubt that people in the first few
years of their home buying lives have to stretch to the absolute
maximum of their income,"
"So, what they''ll do is take a fixed rate mortgage for peace of
mind. They won't particularly be thinking: "Let's gamble on a
tracker because rates might go down".
"They think: ''I can only afford £1,000 a month, if rates
go up, I will be stuck''. So that's the main factor that drives
people to fixed rates,"
'57 per cent of borrowers would rather be on a fixed rate
mortgage' researc from Fair investment revealed.
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