Recent research carried out by the Council of Mortgage Lenders (CML) indicated that there was real consumer interest in long term fixed rate mortgages given the uncertain times we now live in.

Apparently 42% of those interviewed said that they would take a fixed rate deal for peace of mind. Of these 43% said that they would prefer a medium, 5 to 10 year deal, or long term, 10year+.

Oddly enough this goes completely against everything we have experienced since we returned to work after Christmas. We are finding that clients are increasingly interested in variable rates and trackers in particular. Very few are asking or are interested in a fixed rate product.

Fixed-rate mortgages were introduced into the UK in the late-1980s in response to demand for something that would reduce homeowners’ exposure to shifts in interest rates. Unlike much of Europe and the US where mortgages are often fixed for 30 years, long-term fixed mortgages have never really taken off over here where the most common period for a fixed-rate mortgage is 2- 3 years.

So why are we finding trackers mortgages so popular at the moment? It’s simple. The markets are expecting interest rates to fall and we and our customers support this view.

Anyone choosing a fixed-rate mortgage now which is cheaper than the variable rate alternative when they take it out, will soon find themselves penalised as variable rates fall throughout the year and they are left with higher monthly repayments.

Perhaps its time for the CML to do some more research.