Remortgage borrowers look to fix for five years
Almost a third (28.5%) of those looking to remortgage want to take a five-year fixed rate deal, according to a new report from Iress and Koodoo.
The Online Mortgage Search and Competition Index will be published every month, using data from the two businesses. The key finding of the first report was that online consumers are racing to lock into five year fixed rates amid wider economic uncertainty.
It also found that the fiercest competition in the market was in the remortgage sector for low risk fixed rates below 60% of the property’s value, with plenty of choice for borrowers and particularly low rates.
However, mortgage products for borrowers with just a 10% stake in their property were still limited, although there are now more products available for those who have just 15% upfront.
Iress’ executive general manager, Dave Miller said: “We’re clearly seeing a response to continued uncertainty in the market, with consumers keen to lock in rates for a longer period.
“We’re also seeing that lenders are beginning to show signs of willingness to lend at higher LTVs.”