Fears of higher interest rates has led to a record number of first-time buyers opting for fixed-rate deals, according to new figures.

In February, 87 per cent of first-time buyers chose a fixed-rate mortgage - up from the previous record of 84 per cent in January and 82 per cent in the same month last year.

February's data showed that 70 per cent of home movers took out a fixed-rate home loan, compared to 67 per cent in the previous month.

The figures, from the Council of Mortgage Lenders (CML), also revealed that fixed-rate mortgages accounted for 76 per cent of all loans for house purchase in February.

Fixed-rate deals remain attractively priced compared to other products, the CML said.

Since August 2006, the price of fixed-rate deals has increased by just 0.16 per cent, while discounted, tracker and standard variable-rate products have increased by more than 0.5 per cent.

The average interest rate on a fixed-rate loan in February was 5.34 per cent, up from 5.27 per cent in January.

Discounted variable-rate products reached 5.68 per cent in February, up from 5.54 per cent in the previous month.

CML's director general Michael Coogan said: "With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed-rate deals, and locking into the payment security they provide.

"First-time buyers are the most financially stretched group, and the fact that a record number of them are choosing a fixed-rate deal demonstrates their desire to plan ahead and avoid the risks interest rate rises would bring."

The article More homebuyers opt for fixed-rates originally appeared on 999 Today