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Fixed rates 'help first-time buyers'

Many of the nation's first-time buyers are currently favouring fixed-rate mortgage because of the greater stability they offer, it has been claimed.

According to Mortgage Express, fixed-rate home loans are popular with new buyers because they provide "peace of mind" and allow people to get used to running a home without worrying about their monthly repayments increasing.

However, the company's head of residential lending Tim Anson said that UK consumers should be aware that standard fixed-rate deals could begin to look "uncompetitive" if interest rates continue to fall in the new year.

"For most people a mortgage is the biggest financial commitment they will ever undertake and increasing numbers of borrowers have sought the certainty provided by fixed-rate deals in recent years," Mr Anson explained.

He added that a borrower's "individual circumstances" must always be taken into account before the right kind of mortgage product can be determined.

A recent survey by Abbey found that nearly one in three British homeowners would opt for a fixed-rate product of five years or more if remortgaging their house at the present time.

Personal loans can contribute to the cost of running a home.

See how much you could borrow with a home loan from Lombard Direct.

© Adfero Ltd

10/12/2007 15:59:33

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