estate agency appletons on 14 Mar 2007 10:42 pm
Fixed rate mortgages on the up in 2007
According to the Council of Mortgage Lenders, more first-time buyers are opting for fixed rate mortgages this year with the expectation of the interest rates going further up in 2007.
Although most people think that even the steep rate increases haven’t slowed down the house prices going up so far and in general people are expecting further rises, Nationwide have claimed there were signs of the housing market cooling off.
According to some analysts, the forecasted £9 billion of bonuses in the City has a very impact on the housing market. These analysts estimate that approximately 60% of these bonuses get invested in the property market. This then starts pushing up the property prices; starting in London and trickling out to the rest of the country.
The Council of Mortgage Lenders reports that, in January, 85% of first timers took out a fixed-rate deal, which is the highest proportion on record.
70% of all the house movers preferred a fixed-rate deal.
Following the three rate rises since last August, The average interest rate of these mortgages was 5.27%.
