Homeowners 'would prefer fixed-rate' if it comes to the crunch

The majority of homeowners would opt for a fixed-rate mortgage product over any other if they were forced to make a snap decision in the current climate, a study has found.

Abbey asked a sample of homeowners what mortgage decisions they would make if forced to do so in the next 24 hours.

the results were overwhelmingly in favour of fixed-rate products, with nearly 80 per cent saying they would choose one.

Most said certainty of repayment amounts was the main driving force behind their choice of mortgage.

Less than a fifth of respondents opted for a variable or tracker product, due to the unstable state of the market at present.

Sue Hayes, Abbey director of mortgages, said: "Fixed rates have always been popular in times of uncertainty when people look to gather as much security as they can from their mortgage"

The Bank of England has raised interest rates five times in the past 12 months, taking it to its current level of 5.75 per cent.

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