Remortgagers display fixed views

The majority of remortgagers are opting for fixed-rate mortgages more than any other product, new independent research has revealed.

A survey found 57 per cent of Brits would choose a fixed-rate deal when looking for a new mortgage with 30 per cent of total respondents favouring a short-term product, and 27 per cent a longer-term fix.

According to online finance portal, Fairinvestment.co.uk, which conducted the research, the figures show remortgagers are "playing it safe" amid uncertainty at the direction Bank of England interest rates could take.

Almost a quarter of those surveyed, 23 per cent, said they would opt for a tracker mortgage – showing a strong proportion of homeowners are optimistic there will be more rate cuts.

Meanwhile, nine per cent admitted they favoured discounted mortgages, eight per cent were attracted to deals with variable rates and three per cent said they would opt for a stepped deal.

James Caldwell, director of Fairinvestment, said: "The public are obviously wary of exposing themselves to the economy at large and are acting accordingly, with a high proportion of people opting for fixed-rate mortgage deals.

"With a large number people coming out of existing fixed-rate arrangements back on to lender variable rates, many people are keen to re-fix their mortgages."

However, he warned being too cautious could mean many borrowers did not make the most of the best deals.

"While it is understandable that homeowners want to protect themselves from economic uncertainty, opting for a fixed-rate mortgage means they do not benefit from any further drops in interest rates," he said.