A majority of mortgage shoppers (81%) were looking at fixed-term deals in February, compared to 80% in January and 83% in December, Experian’s Credit Barometer has found.
Shoppers were increasingly reluctant to view tracker deals as a realistic option for their home loan, with just 9% looking at them in February, compared to 13% in January, and 10% in December. This could be due to economic uncertainty and rates for fixed deals remaining at historically low levels.
Amir Goshtai, managing director of Experian Marketplace and Affinity, said: “It’s understandable that those looking for a mortgage to secure their dream home are focusing on fixed deals, with the assurance of the same monthly payments that they provide.
“No one is quite sure what may happen to the economy in the next few months, with growing uncertainty about the impact of Brexit, particularly if there is a no deal.
“A mortgage is the biggest financial commitment someone can make, so it important they know what’s available on the market before taking the plunge.”
Meanwhile, analysis of loan data shows that the amount people are looking to take out with a debt consolidation loan peaked in January.
Shoppers were looking at taking a loan of £11,343 on average in January – the largest amount in the last 12 months. In comparison, the average amount searched for in December was £10,703 and £10,338 in February.
The figures suggested that households were looking to get their finances in order as we entered the New Year.