Mortgage choice often linked to region, says Abbey National

More than 20% of London borrowers have opted for fixed rate mortgage deals in 2002, compare to only 8% in the Midlands and 12% in the North.

The news comes from Abbey National, whose most recent research suggests people&#39s borrowing preferences vary widely according to the part of the country they live in

While mortgage choice depends on financial circumstances, the majority of UK borrowers are making the most of discounted mortgages. However, financially stretched Londoners living in the most expensive region of the UK are showing a desire for stability in their mortgage.

Home improvement loans have also proved popular, particularly in Greater London which has seen a growing trend of people enhancing their existing home. 55% took out a home improvement mortgage either for their own sake or to help add to their home&#39s market value. In the Midlands, 57% have also been reinvesting in their current home rather than upgrading to a bigger property, which is perhaps an indication of the rapid house price increases experienced in the region.

Cashback and capped mortgages are in demand north of the border with 3% of Scottish home-buyers taking these mortgages, compared to just 1.4% in London and 1.25% in the North.

Guy Aldwinckle, head of mortgage marketing at Abbey National, says: &#39&#39Different areas of the country have been through different housing market trends in the last year and therefore we are seeing differing borrowing patterns.

“With interest rates at a 40-year low and so many good mortgage deals available, it&#39s no surprise that the discount mortgage is currently the most popular among homeowners overall. The home improvement loan seems to be a real alternative for people who are keen to maximise the value of their existing property.”