Homeowners Turn to Discount Mortgages
The number of mortgage applicants choosing discount mortgages over fixed rate deals is on the up.
While interest rates have been increasing rapidly many UK mortgage customers have been opting for fixed rate deals. Quite understandably people have been after a level of certainty in what is an uncertain market.
Research from mform suggests the number of applicants selecting fixed rate deals has fallen from around 70% to 48% in the last month. The data also showed that of the near 60% of applicants plumping for variable deals discount mortgage offers were increasingly popular.
With fixed mortgages deals (including the fees) becoming evermore expensive it would seem people are prepared to move away from the ‘safety’ of fixed rates and take a chance on variable alternatives.
With many industry experts tipping interest rates to peak at 6 percent before falling back this could well be a wise move. Other than the initial ‘discount’ the main benefit of a discounted rate is that it reduces in line with falls in the base rate of interest.
The main point being interest rates have risen to the point where a fixed rate deal is not necessarily the most competitive option and fixing your rate should no longer be an automatic decision.
The tides may be about to turn and deeper analysis of the rate type you select is now a vital necessity.
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Sorry, the comment form is closed at this time.