Longer-term fixes see surge in popularity
The proportion of tracker applications fell 3%, all but reversing the trend identified in the first quarter.
The results of the specialist buy-to-let lender’s Financial Adviser Confidence Tracking (FACT) survey also show two-year terms as the preferred length, accounting for 52% of cases.
However, terms of five years or more experienced a rise of 9% – a third (32%) of all new cases.
Overall, the results have revealed a marginal decline in shorter fixed terms, with one, two and three year fixes falling by 4% in comparison to the first quarter, as five year fixes gain momentum and increase for the third consecutive quarter.
John Heron, director of mortgages at Paragon, said: “The second quarter findings highlight the popularity of fixed-rate products across the wider mortgage market. Tracker-rate products continue to appeal to some but it is no surprise to see a strong preference for fixed rates given the latest guidance from the Bank of England.
“The research continues to point to an increase in the popularity of longer-term fixed rates; it may well be that the attractive rates that have been offered will not be available for much longer.”