Most homeowners would opt for a fixed-rate mortgage if they were renewing their policy tomorrow, new research has revealed.
Some 10.3 million Britons would opt for a fixed-rate policy compared to 2.8 million who would choose a tracker mortgage, revealed the latest Abbey Remortgage Tracker.
The most popular time period for a fixed-rate mortgage is two years, but longer policies such as for ten years or 15 years are growing in popularity, the study found.
Interest rates were cut by 25 basis points to 5.25 per cent this week amid broader predictions by some experts of a downturn in the UK economy this year.
Most (58 per cent) homeowners are confused about which mortgage option they would take, indicating that talk of a gloomy economic outlook has confused some borrowers, suggested Nici Audhlam-Gardiner, head of Abbey Mortgages.
"Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything," she said.
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