Uncertain economic climate 'had left consumers confused about remortgaging'
Published On 20 February 2008
People looking to switch mortgage are confused about the options available to them, new research has suggested.Abbey found that the current mixed opinions about the outlook for the economy means that homeowners are now unsure about what mortgage deal to opt for.
In fact, nearly two thirds of people said that they would find it more difficult to choose their next mortgage if they had to remortgage tomorrow.
"Depending on who you talk to there are different outlooks for the UK economy and for Bank of England base rates," explained Nici Audhlam-Gardiner, head of Abbey Mortgages.
"While most economists agree they will go down, there is debate about how much they will fall and when. This uncertainty leaves homeowners with a bit of a dilemma on their hands.
"Our research shows that most popular still is the two-year fixed rate deal, but this is followed closely by five-year fixes."
Earlier research from Abbey showed that 10.3 million people would pick a fixed-rate mortgage if they were to change their deal.
