The certainty of a fixed rate mortgage and some peace of mind is proving too tempting for borrowers, as mortgage rates fall.
The Council of Mortgage Lenders reports that 62 percent of borrowers opted for fixed rate mortgages in May, compared with just 22 percent choosing tracker mortgages.
This represents a significant shift from last year, when fixed rates were less popular at 46 percent and trackers were chosen by 36 percent.
And in accordance, fixed rate mortgage rates are being cut left right and centre. Accord Mortgages this week said that it would reduce the cost of its fixed-rate mortgages by 0.3 of a percentage point. And the Halifax has cut rates for both homebuyers and those looking to remortgage, dropping 3 and 4-year fixed rates for remortgaging customers to 3.64 percent and 5.74 percent respectively.