Fixed-rate deals grow in popularity

Posted: 11 Mar 2008 11:18:05 GMT

New research shows that UK mortgage borrowers are more inclined to opt for a fixed-rate deal in the current climate.

New research shows that UK mortgage borrowers are more inclined to opt for a fixed-rate deal in the current climate.

Abbey has published its monthly remortgage study, where the bank found that 35 per cent of British borrowers would choose a fixed-rate deal if they had to remortgage tomorrow.

This is up on the 31 per cent who said the same in February, with the most popular fixed-rate term being five years.

It comes despite the majority of analysts forecasting that the base rate of interest will fall again this year, potentially leading to savings for those on tracker-rate mortgages.

"The findings from our latest remortgage index show that the appetite for fixed-rate mortgages remains high despite widespread agreement that rates have further to fall this year," said Nici Audhlam-Gardiner from Abbey.

"We expect that economic uncertainty is contributing to this trend as people try to take control over their outgoings," she continued.

The Bank of England's Monetary Policy Committee chose to maintain the base rate of interest in February, leaving it at 5.25 per cent.

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