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Demand for variable mortgages halves
Homeowners' demand for variable mortgages has halved since the start of the year, according to new research by Abbey.
In January, 28 per cent of those who took part in the bank's Remortgage Index said they would opt for a variable product, but in May this was just 15 per cent.
According to the bank, borrowers are beginning to realise that now is the time to get a fixed-rate mortgage as rates are at record lows.
The demand for fixed-rate mortgages is up two per cent since the start of the year as many believe the Bank of England's historically-low base rate of 0.5 per cent will invariably rise.
Homeowners planning to remortgage with a fixed rate has increased eight per cent since January.
Nici Audhlam-Gardiner, director of mortgages at Abbey, said that fixed rates are back in the public consciousness. She said: "As mortgage borrowers realise that variable deals will no longer fall further, it seems that many are now trying to work out when rates will rise again and how long to fix their rate for."
The news comes as recently-released mortgage figures from the Bank of England indicate that 43,201 people secured a home loan in April, up from 40,038 in March, which proved to be more than economists expected.