Borrowers put faith in three-year fixed-rates

| September 2, 2008 | 0 Comments
Borrowers put faith in three-year fixed-rates

Abbey has found that demand for fixed-rate mortgages has risen sharply over the past six months.

According to the lender, 52% of respondents to its survey said they would take a fixed-rate deal, compared with 35% in February and 47% in July.

Twenty-one per cent of people questioned said they would take out a three-year fixed-rate loan, representing a threefold increase in the past six months.

Five and two-year fixes were not so attractive; 9% of respondents said they would choose a two-year fix, down from 22% six month ago, and 8% would fix for five years.

Abbey has concluded from this that consumers are optimistic that mortgages will remain affordable in the short-term.

The research also revealed that demand for tracker mortgages has remained steady throughout 2008.

Eleven per cent of homeowners said they would opt for a tracker mortgage if remortgaging now, compared with 12% in February.

However, a level of confusion over the best choice of home loan remains, with 36% of respondents saying they were unsure which mortgage to choose, compared with 41% in July.

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