12
Jun
CML reports rise in demand for fixed rates
The number of borrowers choosing fixed-rate mortgages in April was
at its highest level for nearly a year, it has been revealed.
According to the Council of Mortgage Lenders (CML), 69 per cent of
people taking out a home loan opted for this type of product.
Not since June 2008 has the fixed-rate mortgage been so popular
compared to other options, the group said.
It comes as the CML reported a "modest improvement" in the overall
number of mortgages approved for house purchases in April. A
similar pattern was recently noted in the Bank of England's latest
mortgage approval data.
CML head of research Bob Pannell remarked: "With the interest rate
cycle now at its floor, an increasing proportion of borrowers are
taking out fixed rates, including for longer-term periods of five
to ten years."
Shorter-term fixed rates are proving less popular than
"attractively priced variable-rate deals" as it is widely expected
that the cost of borrowing will remain low in the near future, he
added.
