Why have fixed rate mortgages increased in popularity?

Recent figures show fixed rate mortgage demand is on the rise, with over 95% of buyers opting for a fixed rate deal in February this year.

Whilst in the past there was a good chance those looking for the lowest rates would have opted for a tracker, it would appear this is no longer the case. Tracker mortgages seem to be declining in popularity as it is no longer necessary to take a risk for a cheap rate.

With fixed rates set as low as they have been in a decade, and with 2 year deals starting from 1.48% (West Brom BS) trackers look far less appealing.

Up to a year ago getting a fixed rate at under 2% was a challenge, and for such a cheap deal it was necessary to choose a tracker linked to the base rate. While these deals were cheap they came with the risk that rates would go up when the interest rate rose. Now it is not necessary to take a risk to get a low rate.

While fixed rates are slowly starting to edge up they are still historically cheap. Many home-owners do not want to take a risk with their finances and are locking into a cheap rate deal while they still can.

If you want a mortgage to buy a new home or remortgage an existing property, you are recommended to make a 'whole of market' mortgage comparison to get yourself the best possible deal for your deposit level.

For independent and impartial advice contact Deal Direct. We are highly skilled brokers with over 15 years experience finding the best mortgages market-wide.

For free no-obligation advice and a 'whole of market' mortgage comparison speak to one of our mortgage advisers. We can find you a mortgage to make your home-ownership more affordable.

Call 0800 048 8828 today for a low rate quote.