Homeowners want to fix mortgage deals

Published: November 28, 2007

Faced with uncertainty about future interest rates, many consumers would like to fix their current mortgage deal, a new study has suggested.

Research from Abbey Mortgages found that one in three homeowners would opt to fix the interest rate on their mortgage for five or more years if they had to renew their deal now.

While 14 per cent of consumers would pick a five-year mortgage deal, nine per cent wanted to set their rate for 15 years.

The economic uncertainty of recent months appears to have put people off two-year deals. Abbey found that the number of consumers opting for such a mortgage had fallen from 40 per cent in the summer to just 12 per cent now.

The majority (65 per cent) of people who wanted to fix their mortgage rate said they would like to know exactly what their monthly outgoings would be in the future.

"You never know what's going to happen in the future, but at least if you've committed to a long-term fixed deal, you know where you are going to stand with your repayments," explained Nici Audhlam-Gardiner, head of mortgages at Abbey.

"Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything."