Consumers 'looking for fixed-rate mortgages'

An increasing number of consumers in the UK are considering switching their variable-rate mortgages to fixed ones.

This is according to Colin Franklin, sales and marketing director at the Coventry Building Society, who made his comments to coincide with the firm's launch of new fixed-rate products.

He claimed that the potential for interest rates to rise is one factor persuading people to remortgage on to such loans.

This month, the Bank of England's Monetary Policy Committee voted to keep the base rate at 0.5 per cent, but experts predict that this will begin to rise as the economic recovery continues.

Ms Franklin said: "Many people are looking to remortgage from their current standard variable-rate on to a competitively priced rate."

Among the new loans being launched by the Coventry is one three-year, fixed deal at the rate of 4.25 per cent, which is a fall from the 4.49 per cent previously offered.