This represents a 19% increase on August last year and a 9% rise on August 2007 when the housing market was at its peak.
Martyn Smith, head of products at Legal & General Mortgage Club, said: “Despite Mark Carney’s forward guidance over the summer it would seem that now consumers are planning further ahead and looking to tie in to deals they know they can sustain in the future.”
The popularity of fixed products is in part due to the historically low rates currently available. The average rate in August 2013 was 3.31% compared to 4.25% and 5.86% for the same periods in 2012 and 2007 respectively.
Smith said although rates were significantly higher in 2007 there was still a high take up of fixed rate products because of uncertainty in the market.
The dip in fixed rate take-up in 2012 came in the third consecutive year that Bank Base Rate was held at 0.5%. With no immediate signs that it would change tracker mortgages became increasingly popular.
But Smith warns borrowers should not become too used to the low rate environment of the past few years.
“We appear to be approaching the bottom of the interest rate curve,” he said. “With most forecasts saying that the next rate move is likely to be upward.”
“Borrowers and homeowners considering whether to fix should take a close look at products now whilst these exceptional rates are still available."
He added: “There are a variety of options out there for people with a range of deposits. For those with a 15% deposit Accord Mortgages has a 2-year product at 3.19% with a fee of £845 whilst Leeds offers a rate of 3.39% with a £199 fee.
“At the other end of the spectrum Nationwide offers a two year fix for just 1.94% on 60% loan to value products.”
