Fixed Rate Mortgages now seen as a safer option than a Tracker

21-Jan-2010

As many as 4,800 people could choose to remortgage each day over the next six months, according to research by retail and commercial bank Santander.  Due to expected increases in the Bank of England base rate over the coming months, many homeowners could opt to make the most of fixed rate deals rather than taking a risk on a tracker mortgage.

The research comes from Santander's Mortgage Remo Index, which monitors monthly remortgaging trends.  They have found that as many as 880,000 people in the UK could be coming to the end of their mortgage deals over the next six months and will need to make the decision about who will manage their home loan from then onwards.  

Phil Cliff, Director of Mortgage Marketing at Santander UK commented:  "A significant number of people could remortgage in the next six months and among those considering their next deal there is a potential for a fall in demand for tracker deals.

"Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed rate deal."

According to the research, over half (51%) of homeowners who will be remortgaging in the next six months say the factor that will most influence their decision on which deal to take is the opportunity to take advantage of a good rate. This is followed by the opportunity to make under or overpayments (9%) and speculation that the Bank of England's base rate will go up (6%).

If you are planning to remortgage and would like to talk through your options with an authorised mortgage adviser, please fill out our short remortgage form.  We will then connect you with an adviser who can give you a free, no-obligation quote based on your financial circumstances.