A MAB report has revealed that 65 per cent of its customers in September opted for a fixed rate mortgage reflecting continued security fears among customers following the Base Rate rises.
In September 50 per cent of MAB customers opted for two-year fixed rate mortgages, 4 per cent for three-year fixed rate, and a sizeable 13 per cent, or 1 in 8 customers for five-year fixes.
After fixed rate products tracker mortgages proved the most popular with 21 per cent of customers choosing them in September. 12 per cent opted for discount products.
The figures also revealed that of business undertaken by MAB; 26 per cent related to first-time buyers, 27 per cent to other new purchases, 26 per cent for remortgages, 11 per cent for buy-to-let and 10 per cent self-certified.
Peter Brodnicki, chief executive of MAB, said: “People have clearly been shaken by this year’s rate rises and have no further appetite for uncertainty where their mortgage repayments are concerned. It is significant that one in eight customers are choosing a five-year rate term – perhaps UK customers’ attitudes towards longer-term products are changing.”
James Cotton, mortgage specialist at London & County, backed the research undertaken by MAB. “Our figures reflect those of MAB and we believe that demand will continue as competition increases with customers prepared to pay a premium for security,” he said.
