The proportion of mortgage borrowers opting for a tracker mortgage has overtaken fixed-rate deals for the first time in 12 months, according to Paragon Mortgages.

The lender says this suggests that borrowers believe interest rates will remain low for some time.

According to Paragon Mortgages’ Financial Adviser Confidence Tracker, a panel-based survey of mortgage brokers, tracker mortgages accounted for 51% of broker’s residential mortgage business during the first quarter of the year, up from 45% in the final quarter of 2009.

The proportion of fixed-rate mortgage business declined from 46% to 43%. This was the first time the proportion of fixed-rate business dipped below tracker business since the first quarter of 2009, and was the lowest level of fixed-rate mortgage business since the final quarter of 2008.

John Heron , Paragon Mortgages’ managing director, said: “The proportion of borrowers opting for tracker mortgages has been growing since last summer as borrowers look to take advantage of low interest rates. Although there are some good fixed-rate deals available