Borrowers opt for fixed rates despite BoE cuts

Abbey’s remortgage index shows the popularity of three-year deals has soared in recent months as borrowers hope to budget their way through the economic downturn. According to Abbey, 56% of remortgagers would opt for a fixed rate deal when their current fixed term comes to an end, up from just 47% in July this year. Tracker demand has also waned, with ten percent of borrowers saying they would take out a tracker deal in September, down from 11% in August. Abbey says three-year deals are proving particularly popular, with 23% of homeowners saying they would take this kind of deal, compare...