2 Sep

Mortgage emphasis moves to fix

Mortgage emphasis moves to fix

Those taking out mortgages are increasingly opting for fixed-rate deals, Abbey has said.

Research by the lender found that the popularity of three-year fixed-rate mortgages has increased more than threefold in the past six months.

Its latest study has shown that 21 per cent of respondents would take out a three-year fix now, with nine per cent going for two years and eight per cent for five years.

The overall trend for fixed-rate mortgages to be the product of choice has been upwards, with 52 per cent now preferring such a deal, compared to 47 per cent a month ago and 35 per cent in July.

Abbey's director of Mortgages Phil Cliff said the recent trend for lenders to cut their fixed rates "seems to have inspired the confidence of borrowers".

The lender is among those who have made several cuts to their deals, while on Friday Woolwich revealed it was lowering some of its fixed-rate deals by as much as 0.28 per cent.

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