Borrowers "confused" over mortgage deals

New research has shown that there is confusion among homeowners about their mortgages, with many stating they would choose a fixed-rate mortgage rather than a tracker should they have to renew their mortgage.

Abbey's Remortgage Tracker monthly survey found that some 10.3 million would choose to fix while only 2.8 million would be happy with a tracker mortgage this month.

Commenting on the trend, Nici Audhlam-Gardiner, head of Abbey mortgages, said: "The research suggests that continued talk of economic gloom has had two effects on borrowers - they are either determined to take the more stable option or are confused about the best mortgage option to take."

She added that there is ongoing interest in longer term fixed-rate mortgages, which illustrates the confusion of many consumers feel in the economic short-term.

She stressed that it is imperative that borrowers feel sure their deal is the one best-suited to them before they sign anything.

Elsewhere, Abbey has announced it will cut its standard variable rate by 0.25 per cent as from March this year.


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