Nearly half (46.8%) of mortgage customers were looking for trackers in May, up from just 32.5% in April, Experian’s Credit Search Barometer has found.
While it is likely many of these customers will ultimately opt for a fixed rate mortgage, the data indicates that potential homebuyers have been encouraged to consider a tracker for their mortgage. This follows the Bank of England (BofE) decision in May to once again hold interest rates at 0.5%.
The level of consumers looking at variable mortgages dropped from 35.6% in April to 29% in May, while those looking for fixed-term deals fell from 31.7% to 24.1%.
Amir Goshtai, managing director of Experian Marketplace and Affinity at Experian, said: “Our new Credit Search Barometer gives a real flavour of what consumers are prioritising when it comes to credit cards, loans and mortgages.
“We can see that people looking to take control and improve their personal finances, whether that be through a credit builder card or consolidation loan.
“But it is interesting that the average age of those looking to build their credit score is 34 – you’d assume that those shopping for these types of cards would be much younger and could be seen as a sign that some have struggled with borrowing in their 20s.
“The Bank of England held the Base Rate again last week, but with speculation that a rise could come as soon as August, people shopping for a mortgage will have to think carefully about what option will be best for them.”