Fixed-rate mortgages 'will grow in popularity'

Posted by Emily Swanson

Prospective homeowners looking to get their feet on the UK property ladder in the near future are likely to continue favouring fixed-rate mortgages.

That is according to Andy Pratt, chief operating officer at Alexander Hall, who believes the popularity of this type of home loan will grow further over the next few months.

Mr Pratt explained this trend is likely to be driven by people unwilling to risk taking out a tracker mortgage at present due to the possibility of the Bank of England deciding to boost interest rates sooner rather than later.

Last week (August 4th), the Bank's Monetary Policy Committee voted to maintain the figure at 0.5 per cent for the 29th month in a row, but the expert stated fixed-rate deals are still perceived as a safer option.

"The rates that are being offered by lenders to try and gain market share are an attractive option to fix at," he added.
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09/08/2011 16:24

News category: Property

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