Fixed-rate mortgages still proving popular

Interest in fixed-rate mortgage deals remained high in February, according to latest figures from Experian.

A majority of consumers (81%) were looking at fixed-term deals, compared to 80% in January and 83% in December. The figures suggest consumers are increasingly reluctant to view tracker deals as a realistic option for their home loan, with just 9% looking at them in February, compared to 13% in January, and 10% in December.

The lack of interest in trackers could be due to wider uncertainty about the economy and that rates for fixed deals remain at around historic low levels. Meanwhile, analysis of loan data shows that the amount people are looking to take out with a debt consolidation loan peaked in January.

Consumers were looking at taking a loan of £11,343 on average in January – the largest amount in the last 12 months. In comparison, the average amount searched for in December was £10,703 and £10,338 in February. The figures suggest that households were looking to get their finances in order as we entered the new year.

Amir Goshtai, Managing Director of Experian Marketplace and Affinity, said: “It’s understandable that those looking for a mortgage to secure their dream home are focusing on fixed deals, with the assurance of the same monthly payments that they provide.”

“No one is quite sure what may happen to the economy in the next few months, with growing uncertainty about the impact of Brexit, particularly if there is a no deal.

“A mortgage is the biggest financial commitment someone can make, so it important they know what’s available on the market before taking the plunge.”