Variable rate mortgages demand drops
Borrowers are increasingly looking for fixed rate mortgage deals as people believe the only way is up for interest rates.
Abbey reports a halving in demand for variable rate mortgages since the start of the year.
Just 15 per cent of those quizzed said they would choose a variable rate mortgage if remortgaging tomorrow.
A total of 60 per cent said they would choose fixed rate deals.
Borrowers are also looking for longer-term fixed rate deals - with demand for ten year deals doubling.
Nici Audhlam-Gardiner, director of mortgages at Abbey, said; "Fixed rates are firmly back on the agenda for those looking to remortgage.
"As mortgage borrowers realise that variable deals will no longer fall further, it seems that many are now trying to work out when rates will rise again and how long to fix their rate for."
However, she warned borrowers not to hold out too long before fixing as current rates "won't last forever".
Last week, mortgage broker Mortgageforce reported a sharp upturn in the number of borrowers opting fro longer-term fixed rate mortgages.
The firm saw 56 per cent of deals going through are for mortgages longer than three years.
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