'Security' of fixed-rate deals sought

In the mainstream mortgage market, buyers are reportedly increasingly seeking refuge in the security of fixed-rate deals.

According to research by Paragon Mortgages, nearly half of all mortgages (49 per cent) that were introduced by advisors during the third quarter were fixed - compared to 46 per cent in the first three months of the year.

John Heron, Paragon Mortgages' managing director, says that, like lenders, borrowers are also looking for increased security and are "locking" themselves into long-term deals and this could apply to people taking out a self buildmortgage to buy a plot of land or develop their dream home.

"There are advantages and disadvantages to long-term fixed-rate deals and borrowers need to be comfortable with the length of time that they are signing up for," he advised.

Like mainstream mortgages, self buildloans can be fixed for between two and ten years to offer increased security.