A rising number of homeowners are looking to prevent themselves from coming under increased financial pressure, a new study indicates.

In research carried out by Charcol as part of its regular Mortgage Monitor, it was revealed that almost four-fifths (78 per cent) of mortgages arranged over the course of April were fixed-rate product deals - a record proportion. Such a rise was attributed to consumer concerns about increases in the cost of living and the impact of falling house prices. The figures come despite the Bank of England’s monetary policy committee opting to lower the base rate of interest twice so far this year.

Following on from fixing monthly mortgage repayments it may be possible that consumers are able to manage other areas of financial demand - such as loan repayments, credit cards and household bills - with greater ease.

Commenting on the figures, Katie Tucker, technical manager for Charcol, said: “This is very high on trend. These peaks normally occur when Bank rate rises are expected, but as Bank rate is widely expected to fall over the next year most of the high take-up was because fixed rates were a quarter to a half a per cent cheaper than trackers.”

The manager went on to report that first-time buyers (FTBs) accounted for just four per cent of Charcol mortgages over the course of last month, a fall from the seven per cent recorded in March. She also reported that not only have mortgage products which offer loan-to-value rates of more than 90 per cent generally disappeared but also interest rates for consumers who do not put down at least a 25 per cent deposit when purchasing a property have increased. It was stated that those who put a ten per cent deposit on a 150,000 pound mortgage would see their monthly mortgage repayments be 93 pounds more expensive than those placing an initial down payment of 25 per cent.

She added: “The average income multiple for normal buyers - and unusually - first-time buyers - was 2.8 per cent times household earned income. Historically first-time buyers have needed to multiply their income by more than normal buyers would, to get the loan size they need, but the two have now converged. This implies that the few FTBs that bought were those with high incomes. The high mortgage rates currently available result in high monthly mortgage payments, restricting many buyers’ affordability.”

The study also reported that Charcol customers selected 187 different mortgage products over the course of last month, a fall from the typical 220 recorded in 2007. It was stated that it is more crucial than ever for prospective property purchases to have a “spotless credit history”.

During the current climate of economic uncertainty those homeowners who are worried about their capacity to manage their money might wish to apply for a secured loan. In selecting this sort of loan, it may be possible that borrowers can meet numerous areas of financial constraint quickly. The financial assistance that a loan provides could also help buyers to meet property-related expenses such as stamp duty and property deposit costs. This may be of particular assistance after a recent study by MoneyExpert revealed that the number of mortgage products available which offer a payment break facility has increased over the last 18 months. Such a rise was partially attributed to chancellor of the exchequer Alistair Darling calling for money lenders to help consumers get to grips with spending during the credit crunch.

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