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Popular mortgage products

Journalist: Jake Carter, Mortgage Introducer

ended 06. June 2023

With the market experiencing a whirlwind of changes in recent years, the popularity of various products has shifted regularly. 

What products are you seeing attracting the most attention at present?

Why do you believe that product is attracting the most attention?

What are your expectations for the popularity of this product over the remainder of 2023?

6 responses from the Newspage community

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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
2 year fixed rates seem to be more popular now than any 5 year deal. People opting for this are looking for flexibility to review their finances again as soon as possible when they feel the markets will of calmed. It’s important for a lot of clients to have the flexibility to review their budget in two years as they have seen a Significant increase in payments.
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Imran Hussain
Director at Harmony Financial Services
The majority of clients prefer a fixed rate product as it allows everyone to know exactly what they pay for a set period of time, and for working families, it allows them to budget 2-year products during a low-interest rate period were super popular, but we now see a shift for those with large amounts of equity and no intention of moving to fix for periods of 5 years but it's all down to individual circumstances.
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Clive Read
Owner at Goldmanread
Without doubt, the 2 year fixed rate has become the most popular product type I have dealt with over the last few months. This is both when it comes to remortgaging and purchasing. This has happened as people are convinced rates are going to peak over the next 2 years once inflation is under control. The consensus is that once this happens mortgage rates will fall again and longer term fixed rates will start to look more attractive. The issue for many people, especially first-time buyers and younger applicants, is that as rates have been so low for so long they find it hard to envisage a scenario that means rates of 4-5% will be seen as normal. It remains to be seen whether this is reality or wishful thinking. It's important as brokers that we have open and full discussions with clients around mortgage rates and especially historic rates. This way customers can be much better informed when entering into a new deal.
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Joe Stallard
Director and Advisor at House and Holiday Home Mortgages
It's true to say the mortgage market, like everything else, has been going through a kaleidoscope of changes lately. As for the products currently grabbing the most attention, it really depends on the specific situation on a case-by-case basis. However, one trend we're noticing is the resurgence of interest in fixed-rate products. Understandably, people seem to be valuing certainty more and more.

Looking ahead, it's difficult to make concrete predictions about the popularity of these products for the remainder of 2023. Market dynamics are unpredictable, and that's an understatement. And consumer preferences can shift rapidly too. However, considering the current demand for certainty, it's possible that fixed-rate products might continue in popularity throughout the year. Nevertheless, it's important to keep an eye on market trends and adapt accordingly so customers get the right deal in this ever-changing landscape.
 
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Austyn Johnson
Founder at Mortgages For Actors
As many variable and tracker rates that we have written, fixed will always be king as people prefer a sure thing. If residential, you know exactly what will come out each month, you then know what you have left to spend. If BTL, then you know your profit margins on £X rent. Variable can work, but it needs to be thought about and the future considered.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
A lot of clients like certainty so fixed rates are the most popular. It always used to be 2 year fixes but it feels like we're seeing more and more clients taking 5 year fixed rates given that often these are actually cheaper than shorter term 2 year fixes now. Ultimately though, the 'right' product for you is always down to your own personal circumstances.