Nearly four out of five (79%) homeowners, if they had to re-mortgage, would choose a fixed rate mortgage over a tracker, according to research from Abbey.
Uncertainty in the market means that only 18% of homeowners would opt for a variable or tracker mortgage, while the majority (40%) of those that would take out a fixed-rate mortgage would opt for a short-term two-year fix.
Sue Hayes, director of mortgages at Abbey, said: Fixed rates have always been popular in times of uncertainty when people look to gather as much security as they can from their mortgage. We are offering some great rates having reduced our fixed rates on September 18 – so it is a good time to take out a fixed rate mortgage with Abbey.
Currently, the cheapest two-year fixes from Abbey are available from a broker and are 5.69% with a GBP1,499 fee or 6.29% with no fee.