Surge in 10 fixed rate mortgages, reports North London Mortgage Brokers, London Mortgage Advice Tuesday, 31st August 2010

In the three months from April to June 2010, interest in 10-year fixed rates surged, with
the number of internet searches for fixed rate mortgages ballooning by 888%.

This is evidence of a growing desire among mortgage borrowers to secure the interest rate they are paying before the Bank Base Rate rises from its current historic low of 0.5%. This is according to credit reference agency Experian’s data

Over the internet searches for ‘fixed rate mortgages 5 years’ rose by 602% compared to a year ago, while on line searches for ‘tracker mortgages’ only saw an increase of 16%.

The conclusion to be drown from this is that the security offered by fixed rate deals is becoming more appealing.

Computation of the various data obtained also showed that searches for property for sale rose by 25% in the second quarter of 2010 compared to the same period in 2009, while searches for rental property were up 22%.

These trends indicate strong buyer interest combined with improved affordability due to the low interest rate environment, Experian said.

Charlotte Hogg, managing director of Experian UK and Ireland said.
“Internet searches for fixed rate mortgages have increased dramatically compared to last year. Although interest rates are still at a record low, our analysis shows that consumers are thinking about how they can capitalise in the long term by minimising the effect of future rate increases and taking action now to protect themselves.”