90% of Consumers Choosing Fixed Rate Mortgages
Released
on: June 18, 2009, 7:54 am
Author: London and Country
Mortgages
Industry: Financial
A
number of factors have contributed to this. Firstly, it’s
widely recognised that we are at or near the bottom of the interest
rate cycle. Base rate could only fall by another 0.5% at most
and in the May meeting of the Bank of England, base rate was held
for the
second month in a row. Consumers are looking to secure a fixed
rate deal whilst rates are at their lowest. Best Buy Mortgages
are available under 3% fixed for 2 years and under 5% fixed for
5 years. These fixed
rate mortgage deals compare favourably with historical rates
linked to lenders’ standard variable rates (SVR).
Secondly
there is widespread concern that when rates start to rise, they
will rise sharply and so monthly repayments on mortgages linked
to Bank of England Base Rate or a lender’s SVR will increase
significantly over a short period of time. Securing a good fixed
rate deal now will mitigate that risk.
Thirdly
there is limited availability of mortgages for those with relatively
small deposits (15% of house value or less) and so consumers in
this situation are grabbing fixed rate mortgages whilst they still
can.
Finally,
as house prices have fallen, consumers have found that the value
of their mortgage relative to the value of their home has increased.
As the best fixed rate mortgage deals are
available below 75% loan to value (ltv) it is sensible for consumers
to fix their mortgage rate in case their property value falls
further and the best mortgage deals are no longer available to
them.
Potential
borrowers wanting to secure a fixed rate mortgage deal can see
the range of leading deals currently available at www.lcplc.co.uk/bestbuys
.For more information and no-fee advice, borrowers can call free
on 0800 373300 or request a call back.
Notes
to editors:
London and Country Mortgages Ltd is the country’s leading
whole of market no-fee mortgage broker and submitted over £4bn
of mortgages to over 70 lenders in 2008. For more information
visit our website London & Country
Mortgages
L&C
is a Climate Neutral company and for the last seven years has
invested in climate friendly projects and tree-planting to help
offset its emissions and those of its customers.
L&C
has won numerous awards including:
Best Mortgage IFA/Adviser of the
Year – Money Marketing, 2004, 2005, 2006 and 2008
Best Technology Adviser – Money Marketing 2007
Best Mortgage Broker outside London – Mortgage Strategy,
2004 and 2005
Best National Broker – Mortgage Introducer 2005, 2006 and
2007
Best Overall Broker – Mortgage Introducer 2005
Overall broker of the year – Pink Home Loans, 2006 and 2007
Top 100 company in the Sunday Times Fast Track 100 for 2004 and
2005
Business of the Year – The Bath Business Awards 2005
Growth Strategy of the Year – National Business Awards (Wales
and West) 2008
Business Leader (Broker) – British Mortgage Awards - 2008
Online Mortgage IFA of the Year – Financial Adviser - 2008
Press Contacts:
Richard Morea, Technical Manager
Office: 01225 341312
Mobile: 07970 885168
David Hollingworth, Head of Communications
Office: 01225 341211
Mobile: 07710 634044
2012
