Borrowers opt to fix as interest rates fall

Two thirds of borrowers are now choosing the security of a fixed rate mortgage. Latest figures released by the Council of Mortgage Lenders (CML) show that in May 62% of borrowers opted for a fixed rate mortgage compared to just 22% who selected a tracker mortgage. Fixed rates are becoming more popular, at the same time last year 46% of mortgages were arranged on fixed rate. Conversely the popularity of tracker mortgages is receding, in May 2010 36% of deals were arranged on this basis. Fixed rates fall Two factors could be behind the increasing popularity of fixed rate mortgages. Firstly, until the surprise slowing ...