Fixed mortgages prove popular

Britons are more inclined to take out fixed-rate mortgages, despite the fact that most analysts anticipate that the base rate of interest will be cut again soon.

Abbey has published research, revealing that 35 per cent of borrowers would take out a fixed-rate deal if they had the choice.

This is up on the 31 per cent figure recorded in February and Abbey believes that it is a sign of borrowers seeking security and stability in their finances.

The most popular fixed-rate term is five years, with 12 per cent of respondents saying they would go for this option, compared to seven per cent last month.

"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," commented Abbey's Nici Audhlam-Gardiner.

The Bank of England's Monetary Policy Committee voted to maintain the base rate of interest in March, following cuts in December and February.

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