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Record number of FTBs opting for fixed-rate mortgages, says CML

Fears over interest rates could rise next month have led a record proportion
of first-time buyers to opt for a fixed-rate mortgage, according to the Council of Mortgage Lenders.

February figures reveal 87 per cent of FTBs chose a fixed-rate loan – up from the previous record of 84 per cent in January, and 82 per cent in the same month last year.

The data also showed 70 per cent of home movers also took out a fixed-rate deal, compared to 67 per cent in the previous month.

Overall, fixed-rate loans accounted for 76 per cent of all loans for house purchase – returning to their highest-ever level last achieved in November 2005 when they also reached 76 per cent.

Since August 2006, the price of fixed-rate deals has increased by just 0.16 per cent, while discounted, tracker and standard variable-rate products have increased by more than 0.5 per cent.

CML director general Michael Coogan says: “The chance of at least one more interest rate rise this year first-time buyers are taking the sensible option of taking out fixed-rate deals, and locking into the payment security they provide.

“First-time buyers are the most financially stretched group, and the fact that a record number of them are choosing a fixed-rate deal demonstrates their desire to plan ahead and avoid the risks interest rate rises would bring.”


PSigma fund shines in dull Isa season

Bill Mott’s new PSigma income fund was one of the big winners in what has been a broadly disappointing Isa season.Mott’s fund attracted 108m in its limited offer period, making it the most successful fund launch this year. Many advisers have reported Isa sales broadly flat on last year, with Chelsea Financial Services marginally below […]

Vava boom

Money Marketing would like to express their gratitude to secret boom maestro Danny Cormack for his help with MMTV on Budget day.Danny is not only our very fabulous display advertising sales executive but is also a dab hand with a boom mic, doing a sterling job with the Cantos crew.Nice one, Danny. Same time next […]

Use wrap or lose business

Advisers who not prepared to raise their game in the current wrap environment deserve to lose business to those companies that embrace it, says Beckett Financial Services.The Bury St Edmunds firm, which has 20 authorised individuals including five chartered financial planners, is launching a wrap service provided by Standard Life on May 1 for its […]

Exchange links with IntelliFlo for two-way quote services

The Exchange’s quotation and new business service, Exweb, will now deliver further integration with Intelligent Office, the back office system from IntelliFlo.IntelliFlo will be able to offer its users a two-way link to the quotes service within Exweb, enabling the quote information to be returned to Intelligent Office.The new business integration capability will re-use the […]

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda


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