Brits manage debt with more fixed rates
Brits manage debt with more fixed rates
- Wednesday, 3 June 2009UK debt management efforts are seeing fixed rates rise up many consumers' agendas in the current low base rate environment, it has been revealed.
Figures from Abbey show fewer Brits are looking to
manage debt by opting for a variable rate mortgage.
Instead, they are selecting fixed-rate deals to lock in the historically low base rate of 0.5 per cent.
Director of mortgages Nici Audhlam-Gardiner says: "It seems that many are now trying to work out when rates will rise again and how long to fix their rate for."
As a result, 15 per cent of mortgage holders would now select a variable rate mortgage.
This compares with 28 per cent in January, indicating the changing
UK debt management landscape.
Setting up a fixed-rate mortgage could be a particularly wise move for those who are in an area of falling house prices at present.
Ms Audhlam-Gardiner previously warned that households could enter a higher interest rate band if their home falls into a higher loan-to-value ratio bracket, impacting on their ability to
manage debt by remortgaging.

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