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Two-thirds of applicants seeking fixed rates

Two-thirds of applications received by Abbey for Intermediaries in a recent week were for fixed-rate mortgages, showing borrowers are looking to fix ahead of a rise in bank rate.

An email with business splits, seen by Money Marketing, shows fixed-rate product applications increased by 9 per cent to 64 per cent of all new business.

Tracker mortgages made up 31 per cent of applications and flexi mortgages comprised 5 per cent.

Remortgage products rose by 7 per cent to 46 per cent of all new business while first-time buyers made up 18 per cent of new applications. Existing customers made up 5 per cent of new business.

The firm’s most popular product for the week in January was a two-year fixed-rate remortgage at 2.99 per cent up to 60 per cent loan to value. This was followed by a two-year tracker remortgage product at 2.29 per cent up to 60 per cent LTV.

London & Country head of communications David Hollingworth says: “We have seen a lot of people enquiring about fixed rates. I think that overall enquiry levels are up by about 40 per cent.”

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  1. An increase in applications for fixed rate mortgages might not be because people believe that interest rates will rise. It could well be do with the fact that they want to know exactly what their household expenditure will be in a volatile jobs market.

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