Despite continued calls for consumers to seek out fixed rate mortgages, application numbers dropped more than 5% over the past few months. Analysts are contributing this to the fact that banks are raising their rates on fixed rate mortgage deals and making it nearly impossible for consumers to get an approval. While application numbers are up for other mortgages, consumers need the security of a fixed rate mortgage right now to help prevent more defaults.The UK government has been encouraging banks to offer more fixed rate mortgages, especially ones that are spread out over more than ten years. However, most banks are not listening nor are they keeping their rates low. This has led many consumers to pick an adjustable mortgage, leaving many to wonder if we won’t be primed for a new housing crisis in the next few years. As the availability of fixed rate mortgages sinks, consumers may end up getting stuck with loans that will dramatically increase over a period of time, which is the problem that has been blamed for the current housing crisis. Experts encourage consumers to keep seeking fixed rate mortgages, even if it means having to spend more time in their search.
Related reading: Home Mortgage
Comment on this article