Adverse Mortgages UK

Fixed-rate mortgages remain a firm favourite with homeowners, the results of a new poll have suggested.

In recent months a number of experts have advised borrowers that trackers represent better value for money than fixed-rate deals.

However, a survey commissioned by Abbey that asked what kind of mortgage people would choose if they had to remortgage now found that almost 80 per cent would select a fixed-rate product.

Around half of those people would opt for a two-year fix, while the rest would go for longer term products of between five and 15 years.

Sue Hayes, Abbey's director of mortgages, said the figures could be explained by the current uncertainty about interest rates and the credit market.

"Fixed rates have always been popular in times of uncertainty when people look to gather as much security as they can from their mortgage," she said.

Statistics compiled by the Council of Mortgage Lenders showed that 79 per cent of all mortgages taken out in July were fixed-rate products.

© Adfero Ltd

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.