Homeowners soon having to remortgage are set to shun tracker deals as expectations rise of an increase in base rate.
According to Santander, more than 880,000 mortgage deals will come to an end over the coming six months. However, only 13% of those due to remortgage said they would opt for a tracker mortgage, compared to 33% just two months ago.
Meanwhile, the amount likely to go for a fixed rate deal has increased from 20% to 23% over the last month, half of whom said they favoured a two year fix rather than one for three or five years.
The majority of respondents said a good rate would most influence their decision over which deal to take. One in ten said the opportunity to make under or overpayments was most important.
Source – eMoneyfacts
Justin Moy