Fixed rates gather pace once more

Nearly four out of five (79 per cent) homeowners, said that if they had to re-mortgage tomorrow, they would readily choose a fixed rate mortgage over a tracker - despite the fact that they could be tied in if interest rates start to drop

Uncertainty in the market means only 18 per cent would opt for a variable or tracker mortgage, while the majority of those that would take out a fixed rate would opt for a short term two year fixed (40 per cent).

Sue Hayes, Abbey director of mortgages, said: “Fixed rates have always been popular in times of uncertainty when people look to gather as much security as they can from their mortgage. We reduced our fixed rates on 18 September - so it is a good time to take out a fixed rate mortgage with Abbey.”

Currently the cheapest two year fixes from Abbey are available from a broker and are 5.69 per cent with a £1,499 fee or 6.29 per cent with no fee.