Fixed-rate mortgage popularity 'on the rise'

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Thursday, 12 August 2010 12:00

The popularity of fixed-rate mortgages appears to be on the increase, according to new data.

Nearly half (48 per cent) of new borrowers took out such a product in June - the highest proportion so far this year - Council of Mortgage Lenders (CML) figures showed.

The option is starting to find favour again because of reductions in fixed-rate prices, the CML noted.

Paul Samter, an economist at the organisation, observed activity is continuing on an upward trend as the effects of government spending cuts have yet to impact mortgage demand.

"Both consumer demand and lending capacity remain distinctly difficult to call," he added.