Fixed-rate mortgages 'have risen in popularity'

Since they were first introduced in the 1980s, fixed-rate mortgages have risen in popularity.

This is according to Halifax, which has published data concerning such products just over two decades since they entered the market.

It suggested that there was initially minimal take up of fixed-rate property loans.

However, over the years their stature has risen and Council of Mortgage Lenders (CML) figures suggest that, by 2009, 68 per cent of new lending was on a fixed-rate basis.

Stephen Noakes, mortgages commercial director at Halifax, remarked: "Ever since their introduction 21 years ago, fixed rate mortgages have been fundamental for homeowners looking for certainty and stability in managing their household expenses."

In today's market, people can choose their product based on a number of factors, including term, type and rate, but this has not always been the case, he added.

Recently, Bernard Clarke from the CML predicted that the UK's mortgage market will improve but it will not reach pre-credit crunch levels for some time.