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Borrowers choosing fixed-rate mortgages
28 August 2008
With house prices continuing to fall and the property market struggling, more borrowers are opting for fixed-rate mortgages, claims Nationwide.
According to Nationwide, consumers prefer to search for the best mortgage deals that fit the current economic climate.
Research by the building society revealed that 44 per cent of borrowers say that they are more likely to look for a fixed-rate mortgage while 43 per cent claim they are now more likely to consider a longer term fixed-rate loan than at this time last year.
Fionnuala Earley, Nationwide's chief economist, said: "Those borrowers choosing a new loan are tending to opt for fixed-rate loans, even though they have been more expensive than trackers."
According to Ms Earley, borrowers wish to pay more money for the best mortgage deals during the credit crunch.
"Borrowers are keen to be sure of their outgoings in uncertain times and wish to protect themselves, even though the choice may be more expensive in the short run," she added.
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