Money News
Fixed rate mortgages continue to dominate the market, despite further expected cuts in interest rates, according to new research from Abbey Mortgages. In its monthly re-mortgaging tracker study, 35% of people said they would opt for a fixed rate mortgage if re-mortgaging tomorrow - up 13% from February when 31% said they would fix. Within this overall increase 5-year fixed rate deals held the most appeal - 12% saying they would opt for a 5-year deal, up from 7% in February.
Tracker mortgages grew in popularity with 12% of homeowners saying that they would opt for a tracker if faced with the decision of re-mortgaging.
Meanwhile, the percentage of homeowners confused by the vast number of options open to re-mortgagers remains worryingly high, although this figure was down from 58% in February to 49% this month. Uncertainty around the multitude of mortgage deals was highest in London and the South East (51%) although regional variation was small.
Appetite for fixed rate mortgages is highest in the North of England with 39% stating that they would choose a fixed rate deal if re-mortgaging tomorrow. Wales and the South West were most likely to opt for tracker mortgages (15%).
Breaking the numbers down 7% said they would opt for a 2-year fix with 7%, 12%, 4% and 5% opting for 3-year, 5-year, 10-year and 15-year fixes respectively. Elsewhere, 4% would opt for a 2-year tracker, 8% for a flexible tracker and 4% for a SVR. 49% said they were unsure.
11 March 2008 © Moneyextra.com
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