Tracker Mortgage Rates Dropped, Fixed Rates on Rise

The tracker mortgage rate has reached to an average of 3.55 percent compared to 6.32 percent at the beginning of the credit crisis in August-2007.

The fixed rate mortgage deals constitute more than half of all the deals while less than a third are tracker rate deals,

According to Jonathan Cornell of First Action Finance, borrowers were aware that interest rates were not going to stay forever and hence opting for the security of a fixed rate deal.

Concerns about the Britain’s economy have compelled many buyers to choose fixed rate deals which protect them against future increases in interest rates.

The figures published by the Royal Institution of Chartered Surveyors suggested that A total of 41 per cent more estate agents expect values to fall, compared to 38 per cent the previous month and the lowest level since March last year.

The house Prices are expected to decrease further due to the increase in the numbers of properties for sale and decreasing demand from buyers.

Ian Perry, from RICS, said that the fresh influx of property to the market combined with a lack of buyers remained the key problem affecting the sector.

And Edward Waterson, a RICS member from Carter Jonas said that buyers were becoming increasingly nervous of the economic climate.

About 51 per cent of the new mortgage deals in July were fixed rate deals and only 30 percent deals formed the trackers.

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