Almost 60% of buyers opted for a fixed- rate purchase mortgage during 2010, with more buyers expected to choose the product this year, new research shows.
According to the national mortgage index, by Coreco and the Mortgage Advice Bureau, fixed-rate deals became increasingly popular as borrowers became less keen to gamble that interest rates will hold. The index also showed overall mortgage applications increased by a third (33.2%) in 2010 compared to 2009, while remortgage applications fell by 1.9% as homeowners chose to revert to their lender’s SVR instead. Brian Murphy, head of lending at Mortgage Advice Bureau, says: “With average rates on two and five-year fixed deals edging up slightly in December compared to November, it is not ...
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