Interest in fixed mortgage deals “strong”: Experian

Data from Experian shows that 89 per cent of mortgage shoppers looked at fixed-term deals in December, up from 85 per cent in November and 83 per cent in October.

Interest in tracker mortgages, however, accounted for just 6 per cent of searches in the last three months, a figure that Experian says in a product of the cost of borrowing rising in August when the Bank of England rose rates to 0.75 per cent.

Furthermore, data collected by Experian shows that mortgage holders could overpay by £1,800 a year if they fail to switch deals when their introductory rates finishes, and they move onto their standard variable rate.

The company says that this is based on the average mortgage loan taken out by its customers in October – £151,955 with a typical SVR of 4.39 per cent over a 25-year term, leading to a monthly repayment of £822.41.

However, Experian reports that customers offered initial rates of 2.38 per cent in October would repay £672.55 a month, which adds to a difference of £1,798.32 annually.

Experian managing director Amir Goshtai says: “Interest in fixed-term deals shows no signs of slowing down as consumers look to protect themselves from future rate rises, while growing uncertainty about the economy could also be playing a part.

“It’s understandable that fixing is proving to be popular, as potential homeowners enjoy the security of knowing what their monthly payments are.”

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