People ‘seeking safer mortgages’

Remortgage approvals may have gone up because more people are looking to take on a fixed-rate product, one expert has suggested.

Andy Pratt, chief operating officer at mortgage broker Alexander Hall, said those looking for a new deal on their house loan may be considering safer options rather than risk interest rates hiking.

He said: “More and more are looking at it and thinking: ‘Well, I know it’s low at the moment, but I’d rather take that deal now which guarantees for the three years.”

People could prefer this to the possibility of rates rising next year or even in 2009, Mr Pratt added.

Creditors may be showing increased levels of interaction with each other, he stated, but they are still limited as to how much they can lend.

According to the Bank of England, the number of mortgage approvals rose for the fifth month in a row in June.

By Francis Finch

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