
Use our range of mortgage calculators to work out how much you could borrow.
Legal & General's latest mortgage index shows that consumers are still choosing fixed-rate mortgages despite the cost of doing so rising.
Its research shows that three-quarters of mortgages were fixed rates in the second quarter of 2008, up from 57% in Q1.
The average two-year fixed rate now stands at 6.51%, up from 5.87% last quarter, with three-year fixes up from 5.84% to 6.99%. The average five-year fixed-rate mortgage now stands at 6.34%, up from 5.82%.
The actual amount people are borrowing has fallen to from 66% loan to value (percentage of a property price) to 63%.
Stephen Smith, Legal & General’s, director of housing, said: “The price of fixed rates and petrol keeps going up and up, yet consumer appetite for both shows no sign of abating.
“There has been a huge jump in the number of homeowners opting for fixed-rate mortgages despite the significant increase in rates, particularly for two- and three-year deals. It shows how risk averse the UK mortgage population is if we still prefer to choose certainty over value.”
The January/February 2012 issue of Your Mortgage is on sale now. In it we feature expert predictions on what will happen to house prices, interest rates and the wider economy in 2012. We also explain the latest State help for first-time buyers, weigh up the relative merits of offset mortgages, and offer handy hints and tips on making sure you have the right home insurance in place. Plus we have all the regular features and our invaluable mortgage basics section. Get your copy now for the latest news, information and help
The Your Mortgage Awards aim to reward those lenders that have excelled in providing innovative and competitive products. Widely regarded as the UK's definitive consumer mortgage awards, the Your Mortgage Awards have now been running for 21 years.





Login to add a comment
Need to register? Click Here