First time buyers ‘look to fixed rate mortgages’

An increasing number of first-time buyers are opting for fixed-rate mortgages as a result of concerns over future interest rate rises, it has been revealed.

According to figures from the Council of Mortgage Lenders (CML), some 85 per cent of first-time buyers chose a fixed-rate deal during January, the highest percentage since records began.

Director general Michael Coogan said: "Increasing numbers of people - especially first-time buyers - are opting for a fixed-rate mortgage. Each month it seems that the prospect of another interest rate rise is balanced on a knife edge."

He added that by fixing their monthly mortgage repayments, consumers can "plan ahead with confidence".

The CML added that fixed-rate mortgages accounted for 72 per cent of all new homeowner loans in January, a rise of 69 per cent from December.

Figures released by the Department for Communities and Local Government revealed average property prices rose by 2.1 per cent between December and January to £205,286.

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