Chris May, a director at packager Mortgage Times, said: “We have seen a massive increase in the number of fixed rate deals coming through, though arguably the best rates have already been revised.”
May predicted continued growth in fixed rate popularity as worries over the effect of the increase in oil prices on the economy took effect.
Ray Boulger, senior technical manager at Charcol, urged intermediaries to explain how fixed rates were designed to clients, maintaining that they were not competitively priced. “Once you explain that fixed rates have in effect factored in future rate rises, many customers have second thoughts. It is up to the broker to explain that even with predicted increases, interest rates are still historically low,” he commented.
Ambrose McGinn, director for Abbey for Intermediaries, said: “Intermediaries are likely to be faced with an increase in requests for fixed rate solutions, with predictions that there may be another increase in the Bank of England base rate soon.”
