Brits 'opt for fixed-rate mortgage deals'

By Jonathan Dawes, Thu 19 Jun 2008 - Published in Mortgages

The number of homeowners opting for fixed rate loans has increased over the last quarter, according to research by Legal & General.

Some 58 per cent of buy-to-let mortgages were fixed over the last three months compared to 35 per cent in the first quarter of 2008.

This is despite the fact that rates for fixed rate loans have increased over that period.

The average two-year fixed rate deal has risen from 5.82 per cent to 6.51 per cent and the average five-year fixed rate deal has risen from 5.82 per cent to 6.34 per cent.

Commenting on the findings, Stephen Smith, director of housing at Legal & General, said: "It shows how risk averse the UK mortgage population is if we still prefer to choose certainty over value."

Research by Lloyds TSB has found that over half of people moving house intend to save money by undertaking the removal process themselves.

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