Uncertainty causes fixed rates boost, says John Charcol
Share
More than a quarter of John Charcol borrowers took out a fixed rate in May due to economic uncertainty.
The John Charcol Mortgage Index reveals 26% used fixed rates, the highest level since October 2009.
But the index also shows first time buyers at their lowest level for 18 months, making up just 6% of the total business last month.
Drew Wotherspoon, director of marketing at John Charcol, says “widespread uncertainty” has driven the popularity in fixed rates.
He says: “This is the highest figure for over six months, as some borrowers begin to look for real safety in what are bound to be some choppy years ahead.”
He adds: “Combine this with the need to find bigger deposits and actually getting their hands on a mortgage, I cannot see this pattern changing for some time to come.”
There was also a downturn in the percentage of the business made up of purchases to 57%.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
