Borrowers appear to be more attracted to tracker rates for mortgage loans, as research has revealed a 17 per cent increase in the take up of these compared to the last quarter.
Figures from Legal & General have indicated that 57 per cent of buy-to-let applicants opted for a tracker, compared to 30 per cent for the previous three-month period.
Director of housing at the company Stephen Smith noted that this is probably because fixed rates “are looking relatively expensive”, as well as the fact that concerns regarding rises in the base rate are dissipating.
He went on to note that the majority of those in the industry believe that it is going to remain low for the time being, “so this is a golden opportunity for people to think about paying off some of their debt”.
Meanwhile, a recent survey from Woolwich of Barclays revealed that mortgages are becoming more affordable, with monthly repayments now averaging at £497.
By Sarah Adie