Borrowers Confused About Their Mortgage Options

by : Gill Critchley

A leading mortgage lender has discovered that people are struggling to decide which option is better for them when it comes to deciding on a mortgage deal.

Borrowers are ending up confused about their choices, or are becoming more and more determined to opt for the most stable alternative. In fact, the new research has shown that most people would choose a fixed rate mortgage deal if given the chance to remortgage.

The study has shown that 10.3 million people would select the fixed rate mortgageoption, whereas only 2.8 million people would want the tracker mortgage deal.

According to the research, most people would opt for this more stable form of remortgagebecause of the unsettled economy we are experiencing recently. The reason people are opting for the most secure mortgage option that they can find shows the extent to which customers are uncertain about the economic future, due to worrying press at the moment, and therefore want the most certain deal around.

The research also states that the two year fixed rates mortgage remains the most popular, although longer fixed term mortgagesare becoming increasingly more popular, with 6% of people saying that they would now opt for a 15 year fixed mortgage plan.

A money savings specialist has also released figures that suggest that there are around 1.39 million people in the UK that have actually changed their mortgage deals in the last 6 months. This only adds to the strength of the research that discovered that news of a disrupted economy has undoubtedly made borrowers more attentive to the deals they opt for.