Consumers 'want to fix their mortgage deals'
Published On 8 February 2008
The vast majority of British homeowners would pick a fixed deal if they were given the opportunity to remortgage, a new study has shown.Data released by Abbey Mortgages showed that 10.3 million people would pick a fixed-rate mortgage if they were to change their deal.
In contrast, just 2.8 million said that they would pick a tracker mortgage.
A two-year fixed-rate mortgage remains the most popular sort of deal for homeowners. Interestingly, an increasing number of people said they would now think about long-term fixed-rate deals, with six per cent saying they would opt for a 15-year option.
"The research suggests that continued talk of economic gloom has had two effects on borrowers - they are either determined to take the more stable option or are confused about the best mortgage option to take," explained Nici Audhlam-Gardiner, head of Abbey Mortgages.
"There is continued interest in longer term fixed-rate mortgages, reflecting customers' confusion in what will happen in the markets short term, and also some fatigue with the two-year remortgage effort and costs."
Figures from MoneyExpert.com recently suggested that a total of 1.39 million people in the UK opted to change their mortgage deal over the past six months.
