Hesitant borrowers turn to fixed rate mortgages

Yorkshire Building Society has seen a surge in fixed rate mortgage applications from borrowers ahead of a potential Bank of England base rate rise.

The ratio of fixed rate to variable rate mortgage applications has grown from 35:1 in August 2017 to 64:1 in October 2017.

The Bank of England’s Monetary Policy Committee decision on interest rates is set to be announced on November 2.

Simon Broadley, Senior Manager at Yorkshire Building Society, commented: “With increasing speculation that the Bank of England could trigger a rate rise this week, our data indicates borrowers are keen to secure a deal before any potential increase.”

He added: “Our findings demonstrate that borrowers value being able to lock-in to a fixed rate deal and know what their monthly payments won’t change during their initial term.”