Britons look to fixed rate mortgages to ‘offset interest rises’

Borrowers are increasingly looking towards fixed-rate mortgages for security on their home loans, an industry expert has suggested.

According to a spokesperson from the Council of Mortgage Lenders (CML), fears of future interest rate rises have led more consumers to fix the amount of their monthly mortgage repayments.

The spokesperson said: "It basically ties them into a period of payment security. Basically, they know their monthly outgoings on their mortgage, at least, are not going to change if interest rates change."

"The markets are still predicting at least one more interest rate rise this year and that could be of a quarter per cent or even a half per cent," the CML representative added.

Some 85 per cent of first-time buyers were reported to have chosen a fixed-rate mortgage during January, with 70 per cent of home movers also opting for the product over the course of the month.

According to research by Halifax, a rising number of properties above the current inheritance tax threshold of £300,000 could impact on consumers ability to make secured loan payments.

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