24-07-2007
Fixed-rate mortgages to become less popular
Would-be borrowers will increasingly move away from fixed-rate mortgage products, it has been claimed.
According to lender GMAC-RFC, tracker or discounted variable rate mortgages are likely to become more popular as short-term fixed-rate mortgages are becoming increasingly expensive.
"Now is the time for intermediaries to harness the change and look towards tracker and discounted products to drive business growth as demand for this type of product will inevitably increase in the foreseeable future," said Julie Gaskin, corporate relations manager at GMAC-RFC.
"The tide is now turning and fixed rates currently on offer are higher than we have seen for several years," she added.
Recent data released by the Council of Mortgage Lenders found that a majority of all mortgages have been taken on a fixed-rate basis since the beginning of the year.
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