22 Jan

Remortgagers 'more likely to opt for fixed-rate'

Remortgagers 'more likely to opt for fixed-rate'

Property owners looking to remortgage over the next six months are becoming increasingly likely to choose a fixed-rate deal, according to new figures.

Santander found that out of the 880,000 householders whose current mortgage arrangements are coming to an end during the first half of the year, 13 per cent intend to opt for a tracker product - down from 33 per cent two months ago.

It suggested fixed-rate deals are appealing more to borrowers expecting the Bank of England's base interest rate to increase at some point during 2010.

"Homeowners now seem more inclined to play it safe," Santander UK's mortgage marketing director Phil Cliff commented.

"Borrowers have seen a large number of highly competitive fixed deals come on to the market recently."

Economist Paul Samter of the Council of Mortgage Lenders this week claimed remortgaging activity remained "exceptionally weak" in December, but said that total mortgage lending exceeded his organisation's expectations.ADNFCR-1222-ID-19573226-ADNFCR

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