Paragon: More mortgage borrowers opting for fixed-rate deals

Date:Wednesday 12th August 2009
Author: Susanna Kavka

There has been an increase in the number of homeowners looking for fixed-rate mortgage deals, according to new figures from a key mortgage provider.

Data from the latest Paragon Mortgages' survey of mortgage intermediaries revealed that 70 per cent of applications submitted by mortgage brokers over the last three months up to June were for fixed rate mortgage deals.

This is the highest percentage since the survey was launched in 1996 and is a substantial rise from the 44 per cent reported in the first three months of the year and 41 per cent in the last quarter of 2008.

John Heron, Paragon Mortgages' managing director, explained that many mortgage applicants appear to be expecting interest rates to rise, although there could be other reasons for the surge.

"Borrowers' hands may have also been forced a little as lenders withdrew a number of tracker deals when interest rates were falling," he added.

Last month, figures produced by Mortgageforce showed that many homeowners were opting for tracker mortgage deals.