The research showed that the number of borrowers who opted for fixed rate products increased by 13 per cent, month on month.
The March research also suggested that a growing number of borrowers were turning to longer-term fixed rate products, with 12 per cent suggesting that they would opt for a five-year product, up from 7 per cent from the February findings.
Tracker mortgages also grew in popularity amongst remortgagors, with 12 per cent indicating that they would opt for a tracker remortgage product.
However, as a result of the continued funding crisis, the lender indicated that borrowers were becoming confused with the remortgage deals available, with 49 per cent of borrowers admitting to ‘uncertainty and confusion’ about the offers.
Commenting on the findings, Nici Audhlam-Gardiner, director of Abbey Mortgages said: “The findings from our latest re-mortgage index show that the appetite for fixed rate mortgages remains high despite widespread agreement that rates have further to fall this year. We expect that economic uncertainty is contributing to this trend as people try to take control over their outgoings.”
Hugh Nichols, proprietor at Badbury Berkeley Financial Services, said: “I think the majority of borrowers given the choice would opt for a tracker because the expectation is that interest rates will fall, but lenders have priced trackers out of the market. Lenders want to sell fixed rates because it means they can budget.”
