A succession of base rate cuts failed to encourage homebuyers to take out variable products in the final months of 2008, a Legal & General (L&G) study suggests.
According to the firm's latest Mortgage Purchase Index, tracking Q4 2008, the number of borrowers taking out variable deals fell 17%. However, while the number of residential borrowers opting for a variable deal fell to 29%, they remain the product of choice for the majority of buy-to-let investors, with 56% of landlords plumping for a tracker. The study also found the average two-year fixed rate fell to 5.9% from. 6.38% in Q3, while the average three-year fixed rate dropped to 6.30% from 7.41% the previous quarter. Stephen Smith, director of housing at L&G, attributed the declining p...
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