Fixed-rate applications up 30 per cent

Mortgage applicants have, as predicted, rushed to fixed-rate mortgages in the hope of avoiding higher rates once the expected May interest hike materialises, new research claims.

The online mortgage company mform.co.uk has seen the number of applications for fixed-rate mortgages increase by 30 per cent in the last month.

Around 85 per cent of the applications the website has received in the past month have been for mortgages whose rates will hold steady as home buyers look to protect themselves from another Bank of England interest rate rise.

The surge in demand for fixed-rate deals, combined with the very real possibility of a rate rise has even lead providers to withdraw or alter their offers. Nationwide Building Society withdrew its five year fixed-rate deal on Monday 23rd and increased the rates across other products.

But, mform.co.uk warned consumers hoping to fix their repayments to be on the lookout for the high fees that some deals come with. According to the website, some so-called deals come with fees that amount to one month’s repayment.

Meanwhile, a rise of 0.9 per cent in house prices, announced by Halifax, raises the prospect of an interest rate hike.