Borrowers turn to fixes for certainty

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The number of borrowers seeking fixed rate mortgages ahead of the potential bank base rate rise next week has been rising, Yorkshire Building Society has revealed.

The amount of variable rate mortgage applications seen by YBS fell from 2.8% in August to 1.5% in October.

This comes as the Bank of England’s Monetary Policy Committee decision on interest rates will be announced on Thursday 2 November.

Simon Broadley, senior manager at Yorkshire Building Society, said: “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.

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

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Written by: Houseladder