Increase in popularity of affordable fixed rate mortgage deals

Whilst many people may have been considering a variable rate mortgage given the way that the base interest rate has plunged recently, a recent report has suggested that low rate fixed rate mortgage deals are coming back to the market, and are proving popular amongst those that wish to fix their mortgage at a low rate for a period of time in order to enjoy financial stability.

A number of mortgage lenders have started offering more competitive fixed rate deals on mortgages since the base interest rate plummeted, and an increasing number of people are looking at taking up these deals, although many require borrowers to put down a sizeable deposit in order to access the most competitive rates.

The Royal Bank of Scotland recently started to offer a two year fixed rate deal with an interest ate of 3.49 percent and an arrangement fee of £799. However, those taking up the deal have to find a deposit of at least 25 percent of the property value. Fixed rate mortgages have always been popular but with the interest rate set to fall further according to officials some people have been looking at variable rates instead.

However, the Council of Mortgage Lenders recently reported that over 50 percent of borrowers still opted for the security of a fixed rate mortgage over the uncertainty of a variable rate mortgage.