Fixed Rate Mortgages More Popular Than Ever

Fixed Rate Mortgages More Popular Than Ever
The Council of​ Mortgage lenders recently reported that an​ amazing 71% of​ all mortages and remortgages in​ April 2018 were arranged on​ fixed rate terms,​ that’s 17% higher than the​ same period last year .​
The increasing attraction of​ fixed rate deals is​ a​ product of​ the​ attractive offers being made by lenders together with a​ desire by consumers to​ lock-in to​ the​ current low rates for as​ long as​ possible.
The balance shifted slightly towards new mortgages and away from remortgages,​ possibly a​ symptom of​ lenders making the​ benefits of​ remortgaging less attractive to​ existing borrowers – the​ recent increases in​ exit fees almost certainly a​ factor here .​
(That increase is​ currently under regulatory investigation by the​ way) First-time buyer mortgages grew in​ size slightly to​ an​ average of​ £106,​400,​ that’s almost £12,​000 higher than April last year .​
First buyers are now borrowing an​ average of​ 3.21 times their earnings,​ which is​ also slightly up on​ last month .​
The average mortgage payer now spends 16.2% of​ their income repaying their mortgage,​ slightly less than previously and probably caused,​ the​ Council says,​ by the​ increased take up of​ fixed rate deals.
There has also been a​ crop of​ new fixed rate mortgage deals where lenders are offering to​ fix rates for as​ long as​ 15 years .​
That sounds crazy until you​ work out that it​ indicates supreme confidence in​ the​ stability of​ the​ money markets lokking forward .​
Heartening information for all of​ us.
In my opinion all these mortgage factors are reaching worrying levels with people borrowing not only more and for longer,​ but are also committing to​ repayment figures that are higher proportions of​ their income than ever before .​
All this is​ driven by the​ spiralling increase in​ house prices over recent years and a​ general worry by some people that if​ they don't get on​ the​ housing market now,​ they never will.
Fixed Rate Mortgages More Popular Than Ever Fixed Rate Mortgages More Popular Than Ever Reviewed by Henda Yesti on July 01, 2018 Rating: 5

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