Crunch-hit borrowers 'worried about the mortgage'

14/08/2008

Nervous homeowners are taking increasing care over their next move in the mortgage market, Nationwide has found.

The lender said that 53 per cent of the group now feel "more interested" in their loan's final rate than they did 12 months ago.

Moreover, 44 per cent said that they are now prioritising taking out a fixed rate deal more than they would have done last year.

The continuing credit crunch was blamed by Nationwide for this conservative trend.

Martyn Dyson, head of mortgages at the firm, said: "In the current climate, it's not surprising that more people are looking to fix their mortgage rate for longer."

Further findings from the Nationwide research also include the fact that four in five people now feel "more interested" in taking out a loan which did not include penalty charges for switching to another provider.

The lender's house price survey has also detected an eight per cent drop in the average value of property over the past 12 months.

Tags; Housing Debt and Bills,

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