Data released by Experian, which identified the types of mortgages potential borrowers had been searching for this month, revealed 89% were looking at fixed-term deals.
This compared to 85% in November and 83% in October, showing that customers are becoming more likely to choose products which guarantee a specific interest rate for a set period, as opposed to rates which are influenced by the Bank of England (BoE).
Only last week the BoE announced it would be leaving the base rate at 0.75%, its highest level since 2009.
Amir Goshtai, managing director of Experian Marketplace and Affinity, said: “Interest in fixed-term deals shows no signs of slowing down as consumers look to protect themselves from future rate rises, while growing uncertainty about the economy could also be playing a part.”
According to the data, interest in tracker mortgages has been low, accounting for only 6% of searches in the three months.
Goshtai added: “It’s understandable that fixing is proving to be popular, as potential homeowners enjoy the security of knowing what their monthly payments are, but it’s important they consider all their options when it comes to their mortgage.”
Switching deals
Experian was also reminding borrowers of the importance of switching deals when their introductory rate finished, before they slipped onto their lenders’ standard variable rate (SVR).
Its analysis revealed mortgage holders could find themselves overpaying by £1,800 by not switching. Homeowners and potential-borrowers can also use Experian to check their mortgage eligibility to help them find out which deals they are likely to be accepted for and how much they could borrow based on each lenders’ criteria.
For more information on rates and deals go to our mortgage calculator.
