Demand for fixed rate mortgages has reached an all-time high as borrowers take advantage of record low rates, new data shows.
According to a new report by Paragon Mortgages, 89% of mortgages introduced by brokers were fixed during the first three months of 2017 – up 6% on the previous quarter.
This continues a long-term upward trend that has risen particularly sharply since the end of 2010 when fixed rate and tracker mortgages comprised 46% and 45% of all mortgages, respectively.
By contrast, tracker mortgages have declined at almost exactly the same pace and now account for just 10% of mortgage business – its lowest ever level.
The Bank of England cut its base rate last year from 0.50% to 0.25%, which led to lenders slashing rates.
With the number of competitive deals on the market growing, many borrowers are choosing to remortgage to take advantage of the low rates currently on offer.
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