Fixed-rate mortgages retain popularity

New research from Abbey shows that fixed-rate mortgages continue to dominate the market, despite predictions of further cuts in the base rate in the months ahead.

The lender’s latest monthly remortgaging tracker study reveals that, if remortgaging tomorrow, 35% of respondents would opt for a fixed-rate mortgage.

The percentage is up 13% from February, when 31% of participants in the study said they would opt for a fixed-rate deal.

The March survey found that five-year fixed-rate deals had increased in popularity, with 12% of respondents showing a preference, compared with 7% in February.

Meanwhile tracker mortgages showed a rise in popularity with 12% of respondents preferring this option.

The North of England showed the greatest affinity for the fixed-rate deal (39%).

In Wales and the South West more respondents were likely to opt for a tracker mortgage (15%).

The percentage of homeowners confused by the remortgaging market remained high in March, at 49%, but was down on February, when 58% of respondents had difficulty in understanding the market.

Homeowners in London and the South East were slightly more confused than in other regions.

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