02/06/2017The proportion of borrowers electing to fix their mortgage rate has hit the highest level on record, while tracker deals are at their l
The proportion of borrowers electing to fix their mortgage rate has hit the highest level on record, while tracker deals are at their least popular.
In the first quarter of the year, 89% of mortgages arranged by advisers were on a fixed rate, according to Paragon Mortgages’ Financial Advisers Confidence Tracking (FACT) Index report, based on interviews with 200 mortgage intermediaries. That is 6% higher than the previous three months, and continues a long-term, upward trend starting in 2010, when 46% of borrowers opted for fixed rates.
Two-year fixed rates are still the most popular, accounting for 48% of mortgages arranged, but there was a significant jump in the popularity of five-year fixed rates, up 3% to account for 34% of mortgages arranged.
John Heron, managing director, Paragon Mortgages, said: “It’s clear to see that the benefit of certainty at such low rates is continuing to drive up the popularity of fixed rate mortgages – particularly five year fixed terms, which gained further ground in Q1 2017.”