25
Aug
Fixed rates 'preferred option for borrowers'
Fixed-rate deals are the preferred option for many borrowers, one
property expert has asserted.
Michelle Slade, a spokesperson for Moneyfacts.co.uk, which aims to
help customers make better financial decisions, said that while
tracker mortgages currently offer much lower rates than fixed-rate
deals, many borrowers are worried about the effect any inevitable
increase in the base rate will have on their ability to repay the
loan in future.
"It appears that those looking for a new deal are subsidising the
revenue lenders are losing from existing customers on low-rate
standard variable rate (SVR) or tracker deals, some of which are
currently paying less than one per cent," stated Ms Slade.
Her comments follow the release of a report by Unbiased.co.uk,
which revealed that 27 per cent of homeowners are now on an SVR
compared to 23 per cent earlier in the year.
Meanwhile, the Council of Mortgage Lenders recently reported that
there are further signs of stabilisation in the mortgage
market.
