Borrowers prefer discounts and trackers

As the base rate regains a hint of stability, Andrews Mortgage Services has reported that discount and tracker mortgages make up the largest portion of the market so far this year. This is coupled with a drop of more than ten percent of clients opting for fixed rate products.

Chris Chapman, director of Andrews Financial Services commented, “Whilst fixed rates remained popular during August, having peaked as the choice of product for some 91% of our clients during July, this figure fell dramatically to 81% by the following month. This is 6% less than the previous low for the year - 87% from January to May.

“With nearly one in five clients now opting for variable products, fixed rates, it would appear, may be beginning to fall from favour. A number of lenders are finding it increasingly expensive to fund fixed rate products, so it’s fair to say more competitive tracker and discount mortgages may well be just around the corner”.