Borrowers opt for fixed rates in Q2

Its sixth report in the 'Mortgage Purchase Index' series analyses trends from thousands of mortgage applications made in the last quarter through L&G's Mortgage Club. The Q2 2009 key findings included 87% of residential borrowers chose a fixed rate compared to 71% in Q1. Although the average two year fixed rate increased to 5.46% from 4.78% in Q1, average three, five and ten year fixed rates all dropped. Average residential LTV was 60%, whereas for buy-to-let it was 70%. Stephen Smith, director of housing at L&G says that borrowers who are prepared to take out variable rates have been fe...