CML tracks fixed rate decline
The amount of customers opting for fixed rate mortgage loans fell in February, new figures from the Council of Mortgage Lenders show.
Just over half of loans borrowers (52 per cent) opted for a fixed rate deal - the lowest level for three years.
Correspondingly, variable rate tracker mortgages were on the up, making up 35 per cent of loans - an increase of 21 per cent over the past year.
CML also said that mortgage lending remained "subdued" over the month - with the £25 billion borrowed down 3.5 per cent from January and 2.3 per cent from the year before.
Director general at the body, Michael Coogan, said: "The trend away from fixed-rate products continues as expectations of further Bank base rate reductions, probably starting this week, have increased."
The CML's findings contrast with a report from loans lender Abbey, also released today.
According to the firm, the amount of people who would pick a five-year fixed rate loan if they had to remortgage tomorrow has doubled over the past month, from 12 to 24 per cent of Britons.
Send this article to:
