Fixed Rate Mortgages Becoming More Popular

Research from the mortgage trust has shown that more people are opting to take out fixed rate mortgages. It's likely this is in response to the 5 interest rate rises imposed by the Bank of England so far this year.

Landlords who are investors who usually understand the financial risks associated with borrowing seem to be among the growing numbers of fixed rate mortgage applicants. More often than not landlords are opting for short term deals 2 to 3 year deals to protect their financial positions.

John Heron commented: "Our research also shows that an even higher proportion of landlords have been taking out fixed-rate loans. 78% of landlords have been opting for fixed-rate mortgages in recent months."

He continued: "Landlords clearly have their doubts about short term interest rates, with most expecting a further increase. However, their long term expectations are more optimistic, with the majority of landlords looking to benefit from improved variable rates in two years' time. Most landlords are astute investors and will position themselves appropriately to ride out any potential disruptions in the financial market."

It will be interesting to see how the market changes with the next round of interest rate rises imminent. More fixed term deals are likely to be on offer increasing competition and choice.