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34% of borrowers would pay more for a fixed rate

Some 34% of UK mortgage holders would be willing to pay a higher monthly amount for the security of a fixed rate, shows research from Legal & General Mortgages.

The firm’s quarterly MortgageMood survey reveals that 55% of respondents on a variable rate were happy to continue paying their current monthly amount, while a further 11% were unsure.

Of those willing to pay more, 30% were willing to pay an extra £26-50 per month, 24% an extra £1- £25, 18% an extra £100 or more, 13% between £51-£75 and 6% between £70-£99.

Ben Thompson, managing director of L&G Mortgage Club, says it is surprising that such a high percentage of people are willing to pay more to fix in an environment of benign low interest rates.

He says: “Whilst the majority of homeowners are still happy to wait and take advantage of this, it is clear there is still a feeling of nervousness across much of the UK when it comes to mortgage repayments and this feeling of unease is increasing.

“The announcement from Halifax this week that it intends to increase its SVR to 3.99% and the economic pressures being felt across virtually all households in the UK means that people are now starting to think very carefully about the best options for their mortgages.”

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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.