In our March update on the UK mortgage market we report on three of the latest trends in the mortgage space.

Green mortgages are set to become more popular. In the wake of all the recent press coverage on global warming and carbon footprints, mortgages are the latest product to succumb the "green" effect. How can a mortgage be green you may ask? Well it's all linked to the carbon efficiency of your home, with lenders rewarding homeowners, via their mortgage, for maintaining a greener home.

Fixed Rate mortgages require careful consideration at all times, but more so at the moment. Before the recent hikes in interest rates, canny borrowers locked themselves into attractive fixed rates, but those rates have crept up slowly and are now roughly one percentage point higher than a month ago. Many industry watchers expect interest rates to stabilise or even reduce over the next year or so, so choosing a fixed rate product now needs to done carefully.

Interest only mortgages are becoming more popular according to the CML. The reasons are not clear, but must be linked to the high house prices facing many people now. Some quarters say that interest only products can be cheaper than their repayment equivalents, but many lenders are restricting the availablity, fearing the ultimate ability of their borrowers to repay the debt.

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