Eight in ten people looking for a mortgage in August were looking for a fixed-rate deal, the numbers show.
Just over a third (36 percent) of potential borrowers were looking for a two-year fixed-rate mortgage and more than a quarter (28 percent) wanted a five-year product, according to Moneyfacts.
With just under nine in ten (87 percent) of all fixed rate mortgages available in the market being two- or five-year initial rate agreements, mortgage providers “recognize the sentiments of consumers in these terms. two sectors, ”said Darren Cook, director of analytics products at the data firm.
Longer-term financial stability may also be a top concern for borrowers, with just under 9% of demand being met by those looking for a 10-year fixed rate mortgage.
The prices of fixed offers remain competitive, according to data from Moneyfacts.
The five-year average fixed rate is now 2.63%, up from 3.04% in 2016. This means that those whose five-year fixed rate mortgages from 2016 are due to mature should be able to close. a better deal.
Likewise, the average rate for two-year fixed-rate mortgages is 2.38%, which is 0.08% lower than the equivalent rate in September 2019, so those with a two-year fixed rate years can also find a more competitive deal now. than they did in 2019.
Cook said: “Mortgage consumers seem to appreciate the effect that the Bank of England base rate and future inflation rates can have on overall interest rates and the type of mortgage. that they plan to ask.
“Our latest research shows that more than eight in ten consumers (81.04%) looking for a new mortgage in August looked for the availability of a fixed rate mortgage. That leaves less than 20 percent of consumers looking for an adjustable rate mortgage, which may indicate that a large majority of potential new mortgage holders may be more risk averse in the current economic climate.