Fixed rate mortgages with a two-year term are most popular in the UK market at the moment, new research from buy-to-let specialist Paragon has found.
Four out of five mortgage products cases handled by intermediaries during the second quarter of 2015 were fixed, this accounts for 81 per cent of all mortgage products handled in the period.
The Financial Adviser Confidence Tracking (FACT) survey of Paragon Mortgages also shows that over half of borrowers (52 per cent) preferred products fixed for two years.
Five-year fixes were also sought for with this type of product accounting for almost a third (32 per cent) of all new cases in the second quarter. Five-year fixed mortgages have increased for the third consecutive quarter.
There was a small drop in one-, two- and three-year fixed products (4 per cent) compared to the first three months of this year.
John Heron, director of mortgages at Paragon, said:
“The second quarter findings highlight the popularity of fixed rate products across the wider mortgage market. Tracker rate products continue to appeal to some but it is no surprise to see a strong preference for fixed rates given the latest guidance from the Bank of England.
“The research continues to point to an increase in the popularity of longer-term fixed rates, it may well be that the attractive rates that have been offered will not be available for much longer.”
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