Fixed-rate remortgages grow in popularity
February saw a 13 per cent growth in the number of people opting for fixed-rate remortgages - despite widespread interest rate cut expectations.
Figures from Abbey Mortgages reveal the demand for fixed deals remains strong - with 35 per cent of those polled choosing a fixed-rate mortgage if remortgaging tomorrow.
Most notably the number of people choosing five-year fixed rate deals rose by 71 per cent - as demand for certainty amid economic concerns defied the consensus the rate will fall in the coming year.
Only 16 per cent of people would be ready to choose a tracker, discount or variable rate remortgage, while nine per cent would take ten or 15-year fixed-rate deals.
The fracture between the Bank of England's interest rate cutting and the rates remortgage customers receive may also be making people reticent about trusting predictions - as the credit-crunched money markets seem to be having a greater influence on mortgage rates.
Nici Audhlam-Gardiner, director of Abbey Mortgages, said: "The findings from our latest remortgage index show the appetite for fixed-rate mortgages remains high despite widespread agreement rates have further to fall this year.
"We expect economic uncertainty is contributing to this trend as people try to take control over their outgoings. Additionally, there are some good fixed-rate deals to be had."
The Abbey finding match results from John Charcol last week, showing fixed rate mortgage were chosen by 52 per cent of all borrowers in February - compared with a historical average of 33 per cent.
Sixty-six per cent of home loans were remortgages.
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