Homeowners ‘heading for fixed-rates’

More and more British homeowners are turning to fixed-rate mortgage deals when they reach the end of a particular arrangement, it has been suggested.

According to figures from John Charcol, just over half (52 per cent) of all people who took on a mortgage last month opted for a fixed-rate deal and many people made this move in an effort to keep a firm control over their debt management situation.

The mortgage broker behind the latest data has described the rush toward fixed-rates as being surprising in its scale and reflecting the desire consumers clearly have to avoid fluctuating repayment demands.

Katie Tucker, technical manager for John Charcol, commented: “This is surprisingly high compared to the more recent norm of around 33 per cent, so borrowers’ choice in February was more to do with rate than outlook for bank rate movement.”

David Kuo, head of personal finance at Fool.co.uk, said recently that money lenders in the UK ought to avoid retreating to a position of “extreme risk aversion” that would punish responsible borrowers.