Fixed rate mortgages regain popularity
Wednesday 12th August 2009
New research by Paragon Mortgages has found that borrowers are starting to look at fixed-rate deals again.
Its Financial Advisor Confidence Tracker survey found that 70 per cent of all mortgage applications in June were for fixed-rate deals, the highest level since the survey was launched in 1996.
The figure is up from 55 per cent in the first quarter of the year and 41 per cent in the same period in 2008, while tracker mortgages, which peaked at the beginning of 2009, are down to 26 per cent.
John Heron, managing director for Paragon Mortgages, said: "With borrowers unsure about the next move for interest rates, they appear to have been opting for the security of fixed rate deals . It is likely that the next move for base rates will be upwards, but it is unclear when that will be."
Phil Perry, director at advisory firm Ark Financial Planning, recently said that Nationwide's move to cut interest on fixed-rate mortgages would be copied by other industry figures.