Fixed-rate deals most popular option in over three years

The percentage of borrowers selecting fixed-rate deals rose to the highest level in over three years in August.

The Mortgage Advice Bureau’s latest mortgage index shows that 83.1 per cent of borrowers selected fixed-rate deals for purchase applications in August, representing a 3.8 per cent rise on July.

This is the most popular that fixed rates have been since June 2009 when the figure stood at 89.6 per cent.

The Mortgage Advice Bureau’s head of lending Brian Murphy says: “August saw borrowers increasingly opting for fixed rates with 83.1 per cent of house purchasers and 84 per cent of remortgage customers electing to fix.

“Incidentally, these are both the highest proportion of fixed rate take up since July 2009, suggesting that borrowers are seeing real value in the price and security that fixed rates currently offer.”