Two Year Fixed Rates are Popular in June Mortgage Applications
As the threat of rising interest rates lingers, more home borrowers are opting for fixed rate mortgages. In June, the number of applications for fixed rate mortgages was 3/4 of the total according to Countrywide figures. The most popular product was the two-year fixed rate mortgage deal.
"The popularity of two year mortgages over longer-term products indicates that any nervousness over unemployment and government spending cuts is currently a short term concern," said Countrywide Chief Executive Grenville Turner. While the two year fixed rate mortgage deal was popular for new home buyers the very attractive five year variable was popular for those seeking a remortgage. With the Bank of England choosing to allow the base rate to remain at 0.5 per cent it means there are a variety of mortgage and remortgage products available to borrowers. It is important that a borrower consult a trusted lender or broker and get top rate advice on which loan would be best according to the individuals personal situation.