Fixed-rate mortgages 'remain popular'

By Jonathan Dawes, Tue 8 Jul 2008 - Published in Mortgages

Medium-term fixed-rate loans are the top choice among Brits when it comes to choosing a mortgage, according to the Fairinvestment.co.uk.

Despite the fact average rates are higher than they have been for a decade, a study by the group revealed that one-third of users would still opt for a fixed-rate mortgage of between five and ten years.

Last month it was revealed that the two-year fixed-rate mortgage had also hit a ten-year high of seven per cent.

However, the report found 25 per cent would continue to choose a short-term fixed-rate loan.

James Caldwell, Director of Fairinvestment.co.uk, said the research suggested "people do not have much confidence in the chances of the mortgage market recovering within the next five years".

This comes as the National Association of Estate Agents claim the record number of properties on the market means that now is a good time to invest in a house.

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