You are here: Home - Mortgages - Remortgage - News -

Eight out of 10 borrowers choose a fixed rate

0
Written by: Christina Hoghton
06/03/2017
Borrowers are heading to the safety of a fixed rate in their droves, according to a survey of mortgage brokers by lender Paragon Mortgages.

Brokers noted a clear preference among borrowers for fixes, which accounted for 83% of all cases in the last quarter of 2016, and has increased year-on-year since 2010.

Tracker mortgages remain a distant second at 14% of all cases, representing little change over the course of 2016.

Initial fixed or tracker periods of two years are still the most popular products, making up 53% of all cases in quarter four of 2016 – an increase of 5% on the same quarter in 2015.

But longer-term products of more than two years are increasingly appealing to borrowers. They accounted for 46% of all cases, with five-year fixes the second most popular product at 33% of all business.

Remortgaging boost

Remortgage borrowing was up 7% in 2016, said Paragon, accounting for 39% of all mortgages handled in the last three months of last year.

That figure is also 4% up on the same period in 2015, with the increase in remortgage activity echoing industry statistics published by the Council of Mortgage Lenders (CML), who last month reported year-on-year remortgaging increases of 13% in volume and 14% in value.

Next time buyers are now the second most common type of borrower having overtaken buy-to-let lending, accounting for 23% of mortgages handled.

Buy-to-let lending accounted for 19.3% of all business and first-time buyers made up 18%.

John Heron, managing director of Paragon Mortgages, said: “Our survey data shows increased levels of activity over 2016 driven particularly by borrowers remortgaging to better rates. These are as likely to be longer term fixes as they are short term deals which bodes well for customer resilience in an uncertain market.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2196888-houses544
First-time buyers more reliant on loans from grandparents

First-time buyers are increasingly seeking help from family, including grandparents, to afford soaring deposits that commonly reach half their annual...

Close