More security on fixed rates
04 March, 2008 | Web design
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.