L&G: fixed rates rise but remain popular

by Richard Kilner

Story link: L&G: fixed rates rise but remain popular

Despite fixed mortgage rates soaring they remain highly popular, according to Legal & General.

The firm’s second ‘Mortgage Purchase Index’ report analysed 24,000 mortgage applications in a bid to identify and explain trends from the last quarter.

In Q1, buy to let mortgages were 35% fixed, which has since risen to 58%.

Between Q1 and Q2, the average 2 year fixed rate has increased from 5.87% to 6.51%.

Likewise the average 5 year fixed rate has risen from 5.82% to 6.34%, however the average 10 year fixed rate has remained steady on 5.97%.

Although fixed rates continue to climb the public shows no sign of stopping getting them, according to Legal & General’s housing director, Stephen Smith.

Smith goes on to say that increased liking for fixed rate mortgages highlights how risk averse the British consumer is, preferring certainty to value.