Security quest boosts fixed rate demand

THE number of internet searches for fixed rate mortgages has rocketed as borrowers seek security before interest rates rise, according to figures published today.

Searches for 10-year fixed rate mortgages increased by 888 per cent in the three months to the end of June, compared with the same period last year, the latest Experian Insight Index shows.

There was also a 602 per cent hike in searches for five-year fixed deals, while searches for tracker deals rose by just 16 per cent as borrowers responded to continued economic uncertainty by looking for cheap longer-term mortgages before interest rates eventually rebound.

Demand for personal loans fell over the same period, with searches down by 14 per cent in the second quarter compared to last year as consumers focused more on paying down debts than adding to them, according to Experian.