Borrowers ‘seeking fixed-rate mortgages’ to handle debts

Borrowers are looking to secure a fixed-rate mortgage in an attempt to avoid future debt management issues, it has been suggested.

Figures from Abbey Mortgages for May have shown that just 15 per cent of people would take out a variable deal if they were to remortgage, down from 28 per cent in January.

And 73 per cent of those questioned believe that the Bank of England base rate has hit its bottom at 0.5 per cent, meaning that now may be the time to fix repayments.

Director of mortgages Nici Audhlam-Gardiner said: “Fixed rates are firmly back on the agenda for those looking to remortgage.”

She added that mortgage borrowers “are now trying to work out when rates will rise again and how long to fix their rate for”.

Meanwhile, Bank of England data has revealed that remortgages fell during April, with 31,800 such loans being approved by lenders, a drop of 235 on March’s figures.

By Jamie Price