View more on these topics

Borrowers take long-term view

Over a quarter of mortgage holders say they would opt for a fixed rate of more than five years if they were taking out a loan tomorrow, a survey by the Council of Mortgage Lenders reveals.

The CML&#39s annual survey of consumers also shows that just over one in five respondents would prefer an interest rate fixed for five years or less while just over one in 10 would choose a variable rate. Nearly a quarter of those who would pick a fixed rate of more than five years thought it would be the cheapest option.

The survey also reveals that the rate of interest is the main factor initially influencing peoples&#39 choice of mortgage, with three in 10 citing this factor. Not many less said the main influence on their choice of mortgage was advice offered by a professional. Just over one in 10 cited the willingness of the lender to lend the amount required as influencing their choice.

Despite the upward trend in interest rates, almost three-quarters of borrowers currently have a repayment mortgage compared with just over half last year. Half of all borrowers hold a variable rate while over a third have a fixed deal with 5% of these holding a fixed deal of more than five years.

On average, homeowners have held their loans for five years with a quarter saying they have held their mortgage for less than a year compared with a fifth last year.

Sue Anderson, spokeswoman for the CML, says: “What consumers say they will do and what they actually do don&#39t always match up. But this survey suggests that borrowers have an appetite to manage their risk and generally have a responsible attitude to their finances.”


CBI praises Bank of England&#39s gradualist approach

The Confederation of British Industry has praised the Bank of England&#39s decision to leave interest rates unchanged. Ian McCafferty, chief economic adviser at the CBI, says: “The manufacturing recovery is fragile, inflation prospects are well under control and the previous two rate rises have not fully fed through. “If the recovery continues as is hoped, […]

IMB unveils additions to Liberator range

Leicester-based IMB has unveiled three major exclusive additions to its dynamic range of Liberator mortgages to cater for minor adverse, self-certification and buy-to-let clients. The company, one of the leading specialist mortgage packagers in the Midlands, launched its Liberator range in March. All Liberator products are designed to cater for the long-term financial needs of […]

Advance Home Loans launches S500 product range

Advance Home Loans, the branded lending arm of mortgage packager AdvantageMortgage Services, has launched its S500 product range funded by Southern Pacific Mortgage Limited. Advance already offers exclusive product ranges funded by Platform, GMAC-RFC, Mortgages PLC, First National and now SPML. Advantage believes that the Advance Home Loans product range will offer its brokers the […]

Brokers warned about financial promotions rules

Mortgage brokers have been issued with a wake-up call over potential serious penalties that the FSA could impose on them if they fail to comply with regulations surrounding financial promotions. SQ2 managing director Steve Clawley says marketing and advertising issues should be a serious consideration when advisers are making their regulation decision. He says: “The […]

Guide cover

Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


News and expert analysis straight to your inbox

Sign up