Most borrowers reject fixed rates

Most homeowners are choosing to stick with their variable rate mortgages with only ten per cent saying they are opting to fix their rate now.

The Reserve Bank is expected to raise interest rates by about two per cent over the next 12 months. An online poll by News Ltd last week indicated that 57 per cent of borrowers were happy to stay with their current variable rate mortgage with 19 per cent saying they would wait and see. 12 per cent were already in fixed rate mortgages and 10 per cent said they were switching to a fixed rate mortgage.

Fixed rate mortgages are about two per cent higher than current standard variable rate mortgages.

Source: The Daily Telegraph