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ISCOVER
Staff Reporter
Fixed rate mortgages are proving very popular as borrowers become increasingly worried about further out of cycle rate hikes, a new survey has revealed.
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According to a new poll by Loan Market Group, 60 per cent of borrowers are looking to lock into a fixed rate mortgage after all the majors lifted their rates independently of the Reserve Bank.
Loan Market spokesman Paul Smith said 46 per cent of the 764 online poll respondents said they were definitely considering a fixed rate and 14 per cent said they would possibly fix part of their home loan.
Just 36 per cent said they would not fix, while four per cent were unsure.
“Home loan customers are uncertain about the direction rates are heading while the RBA has left the cash rate at 4.25 per cent yet the banks increased their variable rates by modest amounts,” Mr Smith said.
“With attractive fixed products still available and the European debt crisis remaining unresolved, some consumers may seek the comfort of locking in their mortgage rate for a few years.”
