First time buyers are opting for fixed rate mortgages, as they are concerned about future interest rate rises.
This however may prove to be an expensive mistake as interest rates are considered to be near their peak . Therefore stretching one's affordability as a first time buyer means that even a tiny increase in mortgage repayments will not be affordable.
However, the Council of Mortgage Lenders figures highlight that first time buyer affordability is at its lowest since 1992, ensuring that a record number of first time buyers choose fixed rate mortgages .
There may be another interest rate rise in 2007, so for first time buyers it may be sensible to take out fixed rate deals and take advantage of the payment security provided.
They of course wish to pre plan and fixed rate deals demonstrate their desire to plan ahead and avoid the risks interest rate rises can bring.
CML figures highlight that in February 87% of first time buyers opted for a fixed rate mortgage, up from 84% in January, and 82% same time last year.
Moreover opted for fixed rate mortgages, with 70% of Britons moving house selecting a fixed rate mortgage, up from 67% in the previous month.
The average interest rate on a fixed rate mortgage in February was 5.34%, up from 5.27% in January
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First Time Buyers Opting for Fixed Rate Mortgages
Thu, 12 Apr 2007
Recommended links
Multiple Mortgage Options for First Time BuyersDeposits for First Time Buyers Are Increasing
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