Fixed-rates ‘more popular than trackers’

If homeowners were given the chance to renew their mortgage deal tomorrow, four times as many people would opt for a fixed-rate deal over a tracker, it has been found.

Research by Abbey Mortgages revealed that 10.3 million would choose fixed-rates, compared to 2.8 million who would prefer a tracker mortgage.

The study also discovered that 58 per cent of borrowers would be unsure of what deal to go for and four per cent think they would go for their provider’s standard variable rate.

“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,” commented Nici Audhlam-Gardiner, head of the firm.

However, Ms Audhlam-Gardiner warned homeowners to ensure they take out the best deal to suit their circumstance and that they are fully aware of all the options available.

The Bank of England monetary policy committee this week voted to reduce the base rate by a quarter-point to 5.25 per cent.

© Adfero Ltd

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