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Fixed-rate mortgages 'still falling in popularity'

28 October 2009

Fixed-rate mortgages are continuing to fall out of favour, an expert has said.

Mortgage broker John Charcol revealed that 34.3 per cent of all homeowner loans agreed last month were of this type, the lowest proportion in 2009 so far.

It also predicted that there will be a further decline in their number when October's figures are revealed.

Spokesman Ray Boulger remarked: "Most fixed rates still look too expensive. However, the best fixed and variable rates have got cheaper this month, with some real competition now emerging in some sectors of the market."

He suggested that the best type of deal to go for is a variable rate product, as the base rate is likely to stay low for a long time yet.

One lender that has announced reductions to fixed deals is Britannia Building Society.

It has said its two-year deal will be trimmed by 0.45 per cent, with its three and five-year offerings being lowered by 0.2 per cent.

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