|
 Fixed rate mortgages are set to fall in popularity as recent rate rises kick in, according to GMAC-RFC.
The lender says that it is expecting fixed rates to fall out of favour, with tracker and discount mortgages proving increasingly popular.
Pointing to figures from the Council of Mortgage Lenders (CML), which reveal that fixed rates remain comfortably the most popular of mortgage loans – accounting for three-quarters of the total market – GMAC argues that the high take-up will soon begin to wane.
With three rate rises in 2007 and experts tipping further hikes in the base rate, GMAC corporate relations manager Julie Gaskin is among those expecting a change in the mortgage market.
"The tide is now turning, and fixed rates currently on offer are higher than we have seen for several years, making tracker and discounted deals look increasingly attractive, and in many cases cheaper," she commented.
Julian King of National Homebuyers, the UK's leading company proving homeowners with a 'sale home quick' solution says, "It's homeowners coming out of their fixed-rate mortgages that are at risk".
The fast property purchase firm is seeing an increase in the number of enquiries from people who need to sell their home quick because of affordability problems when they exit their current agreement.
"Homeowners coming out of their mortgage deals are double shocked by the lack of viewings on their property. The buyers are just not there.
"With a further rate rise certain, this will cause further problems for the UK homeowner", says King.
The base rate is currently at 5.75 per cent.
What are Social Bookmarks?
 Email this to a friend
 Printable Version
<< Homebuyer News Archive
|
