Nearly 65% of borrowers opted for the security of fixed rates in March, according to John Charcol’s latest Mortgage Monitor.
Released last week, the report states that demand for fixed rates ramped up 12% from 52% in February.
Katie Tucker, technical manager at John Charcol, says: “It’s a sign of the times that borrowers are choosing fixed rates although the base rate is ex-pected to be cut again this year. Consumers are prioritising security.”
The report states that in March, fixed rates were priced 0.5% lower than trackers or discounts on average be-cause LIBOR scaled dizzy heights for most of the month.
Stuart Inman, director at My Mortgage Direct, says: “We’ve noticed a trend towards fixed rates, mainly be-cause the price of trackers is higher by about 0.5%.”
Meanwhile, a recent report from the Council of Mortgage Lenders states that the take-up of fixed rates in February was the lowest since March 2005.
The CML says that the proportion of borrowers choosing fixed rate deals fell to 52% in February from 57% in January.