During February, a record 87% of first time buyers chose fixed-rate loans according to figures from the Council of Mortgage Lenders (CML). This is up from the previous record of 84% in January of this year.

February’s data shows that 70% of home movers chose fixed rate mortgages as well.

The CML also revealed that the number of first-time buyers entering the property market fell in February to the lowest level recorded for nearly two years.

In a further indication that recent interest rates rises are beginning to have some effect, CML figures for February show that the number of home loans taken out by first time buyers dropped to 25,600 from 26,400 the month before. The monthly total is down on the same period last year and is the lowest since March 2005.

Michael Coogan, director general of the CML 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.”