Fear of rates rises draws borrowers to fixed rate mortgages

By Natasha Adamson

New mortgage borrowers are being drawn to fixed rate mortgage products because of fears of future increase rate rises, according to Moneyfacts.

There are over 2,000 different fixed rate mortgage products for property purchasers and home movers to choose from - almost three times more than the amount of variable and tracker products available. Sylvia Waycot of Moneyfacts says "fixed rate mortgages .. are likely to become the white knight of the mortgage industry", as borrowers face more uncertainty than ever as a result of tighter mortgage lending criteria and the impending rate rises by the Bank of England.

Many home owners have been overpaying on their current mortgage product to increase their equity share while interest rates remain at their record low. However, many of those who were keeping a careful eye on interest rate increase speculation are starting to consider that perhaps now is the time to remortgage and get fixed in to a good deal. Equally, many first time buyers who are keen to budget accurately for their house purchase might be attracted to the certainty provided by fixed rate mortgage deals.

If you are buying, selling or remortgaging a property in Northern Ireland, and require a conveyancing solicitor to handle the legal process for you, contact Wilson Nesbitt in Belfast by calling 0800 840 9290.