Mortgage survey shows three-year rates popular
02 September 2008
Homeowners are three times more likely to pick a three-year fixed-rate mortgage than they were six months ago according to research from ICM for Abbey Mortgages.
Mortgage Introducer reports that 21 per cent of homeowners would go for a three-year fixed-rate, with nine per cent opting for a two-year fixed-rate deal and eight who would choose a five-year fixed rate.
Apparently five-year deals would have been chosen by 22 per cent of people the previous month and the drop in popularity could show that borrowers are more optimistic of mortgages being affordable over the short term according to Mortgage Introducer.
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The research also shows that the popularity of tracker mortgages has "remained steady" throughout this year with 11 per cent of homeowners saying they would go for a tracker mortgage if they remortgaged tomorrow, which is up from ten per cent in July.
In related news, the government is to make homeowners exempt from stamp duty for one year if their home is worth less than £175,000, according to reports.
The Guardian reports that the move could save those eligible up to £1,750.
