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Fixed products still most popular with advisers, Paragon finds

Fixed term mortgage products remain the most recommended by mortgage advisers, according to Paragon’s latest Financial Advisors Confidence Tracking (FACT) index.

The index, based on interviews with around 200 mortgage intermediaries, found an increased preference for five-year fixes, which accounted for 32 per cent of product applications submitted by intermediaries in Q3 2016, up from 29 per cent in the previous quarter.


The growth in popularity of five year products is part of a long-term trend, says the report, with five year fixes accounting for 29 per cent of business in the same quarter two years ago, and 24 per cent in Q3 2013.

Whilst numbers remain low, fixed rates of longer than five years are also growing in popularity and accounted for 2 per cent of business in the latest quarter, up from 1 per cent in Q1 2016.

While fixed rates overall remain the most popular choice for borrowers, making up 81 per cent of applications introduced in Q3 2016, there has been a small increase in preference for variable rate products (from 2 per cent in Q2 2016, to 3% currently) and for tracker products, up from 13 per cent to 15 per cent in the latest data.

Paragon Mortgages managing director John Heron says: “The economic outlook remains uncertain and volatile. With some very low longer term fixed rates available in recent weeks it is no surprise that intermediaries are recommending these products to landlords who need a stable payment profile to help them manage the increase in tax that many will see as the changes introduced in the summer budget of 2015 start to bite.”



Pepper launches 30-month fixed rate mortgage

Pepper Homeloans has launched a 30-month fixed rate loan for residential mortgages and remortgages. The limited edition loan starts at 2.93 per cent to 70 per cent LTV. The other options are 3.23 per cent to 75 per cent LTV, 3.63 per cent to 80 per cent and 3.78 per cent to 85 per cent. […]


Accord cuts fixed rates by up to 0.20%

Accord has cut rates on its 60 and 65 per cent LTV fixed rate buy-to-let loans by up to 0.20 per cent. The broker-only lender is making the cuts across its two-, three- and five-year fixes. Accord’s range includes a two-year fix at 1.59 per cent at 60 per cent LTV, available to both remortgaging […]

NatWest Intermediary cuts fixed rates by up to 0.79%

NatWest Intermediary Solutions is cutting rates on a number of its two-, three- and five-year fixed rate house purchase loans and remortgages in its core intermediary range. For first-time buyers, NatWest Intermediary is cutting its two-year fixes by up to 0.47 per cent. The lender’s rates on its other two-year house purchase mortgages are falling […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]


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