The proportion of tracker applications fell 3% during Q2, all but reversing the trend identified in the first quarter, the findings showed.
Longer-term mortgages also increased in popularity, with terms of five years or more experiencing a rise of 9%, representing 32% of all new cases. Two-year mortgage terms were named as the preferred length, accounting for 52% of all cases.
Demand for shorter fixed term mortgages declined overall, with one, two and three-year fixes falling by 4% in comparison to the first quarter.
John Heron, director of mortgages, said the findings were indicative of market sentiment following the recent announcement from Bank of England governor Mark Carney that bank base rate could rise within a matter of months.
“The second quarter findings highlight the popularity of fixed rate products across the wider mortgage market. Tracker rate products continue to appeal to some but it is no surprise to see a strong preference for fixed rates given the latest guidance from the Bank of England,” he said.
“The research continues to point to an increase in the popularity of longer-term fixed rates, it may well be that the attractive rates that have been offered will not be available for much longer.”
