Fixed rate home loans on the rise
The probability of interest rates rising in the coming months is high, as a result a record amount of first time buyers are opting for fixed rate home loans.
Last months figures reveal that around 88% of new buyers have opted for a set rate loan, up almost 4% on the previous month. The number of home movers choosing fixed rate plans is also up by around 3% on February. Set rate loans accounted for the majority of all new loans accepted for the purpose of purchasing a new home.
Consumers appear to be planning ahead when buying new homes this quarter. Opting for fixed rate products provides a certain level of financial security for new buyers, in loom of a further rise in interest rates.
The housing market is becoming volatile and it is suggested that consumers are opting for fixed rates as they offer more stability than variable rate products in an uncertain financial climate.
