Nearly 90 per cent of borrowers are fixing the rate of their mortgages, new statistics have revealed.
Legal & General found that 87 per cent of borrowers fixed their rate in the second quarter of this year, compared to 71 per cent during the first three months of 2009.
"Who could blame them? Margins on these products are high and it's almost a cast iron certainty that when the base rate next moves, it will be upwards," noted Stephen Smith, director of housing at Legal & General.
He added that they have been the cheaper product in recent months and they also provide "peace of mind in a turbulent and uncertain environment".
With talk of economic recovery on the cards, Mr Smith emphasised that the increase in consumer confidence needs to translate into sales to get the market up and running again.
According to the Council of Mortgage Lenders, gross mortgage lending totalled an estimated £10.3 billion in May.
See Also: Property News (6680)
Date Published: 23 June 2009
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