Fixed-rate deals offer peace of mind

Published: February 14, 2008

There is a "reasonable consumer appetite" for long-term fixed-rate mortgages but more could be done to improve their popularity.

That is according to the Council of Mortgage Lenders (CML), which said that making it easier to switch between deals would certainly attract more borrowers.

However, the organisation was keen to point out that it was not being too critical and highlighted the fact that many people choose long-term deals because of the security they offer.

"There's peace of mind if rates go up, it helps to manage budgets and plans, and quells uncertainty if you've borrowed a lot of money," said a CML spokesperson.

"There is a reasonable consumer appetite for long-term fixed-rate mortgages, if consumers are able to exit them more easily and at lower cost," she added.

Recently, chancellor of the exchequer Alistair Darling called for more fixed-rate mortgages to be made available.

Estate Agency Andrews also revealed thismonth that tracker-rate mortgages are increasing in popularity following the recent cuts to the base rate of interest.