Trackers fall out of favour
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Research from Abbey for Intermediaries shows that appetite for trackers has waned dramatically in the last two months, with fewer borrowers saying they will opt for a tracker when the time comes to remortgage.
The research polled over 2,000 borrowers and found that for those due to remortgage in the next six months the proportion of home owners that say they will opt for a tracker deal has gone from 33% two months ago to just 13%.
The number of those likely to opt for a fixed rate deal has gone from 20% to 23% over the last month.
Borrowers seem more inclined to take out two-year fixed rate deals rather than for a three of five-year term.
The research also found that almost one in three respondents said that they would seek advice from a mortgage broker of IFA.
Ricky Okey, managing director of Abbey for Intermediaries, says: “Brokers should see this as a positive sign that there is still a significant amount of business to be had in the market and that consumer confidence in the advice they can get from intermediaries remains high.
“Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, home owners now seem more inclined to play it safe with a fixed rate deal.”
Abbey for Intermediaries has launched some two-year fixed rate deals today: a product at 4.99% with a £995 up to 80% LTV available for remortgages, and the same product for purchases.
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Readers' comments (1)
Geoofrey Chaucer | 28 Jan 2010 6:32 pm
Ha!
I dont believe Abbeys figures.
Who did they use for their market research?
I see Ray Boulger has also questioned the Abbeys results.
Depends how you ask the question.
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