Most Britons would prefer to choose a fixed rate mortgage product when they come to remortgage, according to Fairinvestment.co.uk.
A survey carried out by Fairinvestment.co.uk found 57% of people would choose a fixed rate mortgage when their current mortgage deal expires.
Of those saying they would prefer a fixed rate deal, 30% favoured a short-term fixed rate, while 27% preferred long-term options.
Payment certainty is the key reason for choosing fixed-rates, according to James Caldwell, director of Fairinvestment.co.uk. He says: “A fixed rate deal allows homeowners the security of knowing what their monthly repayments will be and therefore to budget accordingly, safe in the knowledge that they are protected from any rises in the Bank of England base rate.”
Tracker mortgages were the next most popular among consumers, with 23% saying they would prefer this type of deal, while 9% favoured discounted mortgages and 8% would choose a variable rate deal.
Fairinvestment.co.uk says consumers are concerned about the uncertain economic outlook with the Bank of England still keen to control inflation in the mid-term.
“Despite two base rate cuts in the last two months, people are looking for certainty in their personal finances. With a large number of people coming out of existing fixed rate arrangements back onto lender variable rates, many people are keen to re-fix their mortgages,” says Caldwell.
He says rising fuel and food costs, coupled with the Bank of England’s uncertain outlook, means consumers want to fix their payments so they can budget accordingly and ensure they can meet all their monthly expenditures.
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