Abbey's Remortgage Index shows that 41 per cent are 'unsure' about what to choose as uncertainty about the economy and future base rate moves continue. This compares with just 30 per cent last month.
Fixed rate mortgages are still the most popular type of deal - with 47 per cent opting for the security that they provide. Of that figure, 6% of homeowners would opt for a two-year fix if they were to remortgage tomorrow, compared with 7% last month and 8% the month before. Three-year fixes remain the most popular option with more than one-in-five saying they'd choose this if they were remortgaging tomorrow.
Five-year fixes have reduced slightly in popularity for the third consecutive month, with 22% opting for this product, compared to 27% last month and 30% in May 2008, while demand for longer-term fixes continues to increase. Six per cent of respondents opted for a ten-year fix, compared with 5% last month and just 3% in May.
One-in-ten (10%) stated that they would opt for either a two-year or flexible tracker if they were to remortgage tomorrow - up from 8% last month and 7% in May 2008.
Phil Cliff, director of Abbey Mortgages, commented: "The current uncertainty surrounding base rate decisions and the general uncertainties on the market at the moment are clearly feeding through into consumers views on mortgages. However, in times of uncertainty, people want security with nearly half of all borrowers saying they'd choose to fix if they remortgaged tomorrow, most choosing a three-year deal."
