Fixed rate adoption via intermediaries &quotat record levels&quot

Published on

Paragon’s Financial Advisor Confidence Tracker research, a panel survey of mortgage intermediaries, found that 70% of cases submitted by mortgage brokers in the three months to the end of June were for fixed rate deals. This is the highest level since the FACT survey was launched in 1996 and up from 55% in the first quarter of the year and 41% in the final quarter of 2008.

Conversely, the proportion of base rate tracker mortgages being introduced has fallen over the period, which could be the result of lenders withdrawing or re-pricing tracker mortgages as the Bank of England slashed interest rates between December 2008 and March 2009. Tracker mortgages fell from 41% to 26% of cases introduced between the first and second quarters of the year.

Of the fixed rate mortgages, two-year terms remained the most popular with four out of 10 borrowers opting for this period, followed by three-year fixes (32%), five-year (24%), 10-year (2.5%) and one-year (1.5%) deals.

John Heron , Paragon Mortgages’ managing director, said: “With borrowers unsure about the next move for interest rates

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...