15
Jan
Majority of mortgages are fixed rate, study shows
The majority of UK mortgages are fixed-rate deals, new research has
revealed.
A study by finance portal Fairinvestment.co.uk has found that 52
per cent of current British mortgage holders are on a fixed rate,
despite the recent reductions in the Bank of England base rate to a
record low level.
The report revealed that 29 per cent were on standard variable rate
mortgages - which some lenders have cut - while the least common
type of mortgages are trackers at 16 per cent.
Tracker customers will have automatically gained from recent
monetary policy committee decisions, unless their deals include
collar rates that limit how low they can fall, the portal
noted.
Chartered financial planner at the website Sharon Bratley said
those on fixed rates now may be worse off than before as their
mortgages are getting no cheaper while their savings earn less
interest.
However, the situation could be different for new borrowers as
"lenders are also beginning to reduce the rates on new fixed-rate
mortgage rates", she added.
In related news, the Co-operative Bank said today it will not lower
its standard variable rate in response to the latest base rate
change, but stated that customers could switch to other
deals.
