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Follow on Google News | Fairinvestment Reveal Fixed Rate Mortgages Still Popular Despite RatesFairinvestment research has revealed that fixed rate mortgages are remaining popular, despite average costs of borrowing reaching a 10 year high
By: Fair Investment Company New research from Fairinvestment.co.uk (http://www.fairinvestment.co.uk/ In June news came of two year fixed rate mortgages (http://www.fairinvestment.co.uk/ James Caldwell, Director of Fairinvestment.co.uk commented: "Our research was surprising considering how high mortgage rates are in the current market. For 25 per cent of our respondents to say they would choose a short term year fixed-rate (up to five years), despite the fact they are unlikely to find a rate under 7 per cent, suggests that people do not have much confidence in the chances of the mortgage market recovering within the next five years." As banks attempt to build up capital, they are failing to ease the pressure on the mortgage (http://www.fairinvestment.co.uk/ Mr Caldwell continued: "Mortgage rates have continued to rise over the last few months, despite the Bank of England base rate either remaining the same or being cut. "However, what goes up must come down, as we are seeing with house prices so there may be some hope for those facing a remortgage (http://www.fairinvestment.co.uk/ As rates increase, so too are mortgage set-up fees which are pushing potential first-time buyers out of the market. This was reflected by the research which showed that 8 per cent of those questioned cannot afford to buy a house at all. Mr Caldwell commented: "Mortgage set-up fees have got to come down, as the Chancellor recently stated, lenders are taking advantage of borrowers by charging as much as £2,500 just for arranging a mortgage. With such costs, it is no surprise that the number of people who cannot afford to buy is relatively high." The popularity of a fixed-rate mortgage deal was shown in the fact that of those questioned, only three per cent ruled out the idea of ever getting a fixed-rate deal, while one user commented on the fact that, "now is not the time to take out any mortgage." Interestingly, 15 per cent said they would still choose a long term fixed-rate (10-25+ years) mortgage, despite rates reaching highs not seen for a decade. Mr Caldwell concluded: "The fact that a long term fixed-rate mortgage was still so popular is surprising in the current financial climate. The fact that people would still consider fixing at high rates for more than ten years suggests that consumer confidence is low and borrowers are after long term security during unstable times." About Fair Investment www.fairinvestment.co.uk, is an independent online finance portal, providing comparison tools, news, reviews and information on a wide range of financial products and services, including insurance, credit cards, mortgages, loans, savings and investments. Fair Investment Company is a leading internet player that sees 400,000 unique users per month, sells over £5 billion worth of mortgage enquiries and is a Hitwise 100 Banks and Financial Institutions site. End
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