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p>Specialist lender Paragon Mortgages has reported a four per cent reduction in tracker products processed by intermediaries - decreasing for the second time in a row for this type of index…
Paragon's intermediary survey showed an increase in fixed rate products processed in Q2, where it had risen to 80 per cent from 77 per cent in Q1.
The graph shows the two types of products mirroring each other's performance almost exactly for the past ten years. This relation is expected to continue.
Two and five-year plans account for the great majority of sales with 49 and 30 per cent, respectively.
Two year contracts have fallen slightly in Q2 from 53 percent in Q1, whilst those for five years grew by two per cent, after standing at 28 per cent in Q1.
According to John Heron, Managing Director of Paragon Mortgages, the trends are related. People are increasingly cautious, choosing more longer-term fixed-rate mortgages than before.
He added: “The decrease in two year initial terms reflects the increasing popularity of three and five year options. This shows that longer initial terms are increasing in popularity among borrowers, despite two year terms holding the top spot.
“It is encouraging to see further improvement in the numbers of longer-term cases being processed. This also reflects the continued more cautious attitude among borrowers, considering the greater stability and predictability provided by longer-term options.”
Specialist lender Paragon Mortgages has reported a four per cent reduction in tracker products processed by intermediaries - decreasing for the second time in a row for this type of index….
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