Fixed Rate Mortgage Products Quite Popular
Activity within the UK housing market is on the rise and leading the way is the number of house owners who are opting for a fixed rate mortgage. Around 95% of the mortgage loans completed within the month of January were fixed rate mortgage loans, according to data from the Mortgage Advice Bureau. That percentage even went a point higher in the month of February. This according to some in the mortgage industry is the result of fixed rates slowly, but surely increasing.
Remortgage applications are also rising. Month on month increases are happening at about a 16% rate and almost 50% year on year, according to the MAB.
Sylvia Waycot with Moneyfacts.co.uk commented on the state of the house mortgage market, saying: "A rise in Bank of England base rate is constantly on the mind of borrowers, which would explain the preference for fixed rate products.”
Waycot added: "Because of this activity, rates have risen over recent months which will further fuel desire to get - and fix - the best rate as soon as possible.”
Some experts are also pointing a finger at the fact that house prices are increasing rapidly. House buyers want to think they made a move at the right time in the market, and obtaining a fixed rate product ensures them of that.
Remortgages are also suggested for those in houses already. With the impact of a Bank of England base rate increase potentially happening sooner compared with later, house owners could be setting themselves up much better for the future by acting now.