The popularity of tracker rates has trebled amid the ongoing conflict in Iran, figures from Stonebridge network reveal.
The proportion of borrowers opting for trackers leapt to 12% in April, from 4.1% a year earlier.
Stonebridge says the fact that more people are opting for trackers shows that many borrowers are not at the limit of household affordability, can afford to see rates climb but are confident that the conflict and subsequent inflation shock will end relatively quickly.
The proportion of fixed rate deals fell to 87.6% last month — two months after the US attacked Iran — from 95.4% 12 months earlier.
Rob Clifford, chief executive of Stonebridge, said: “It’s a fascinating time to be a mortgage adviser. At times like this, borrower preferences can give you an inside track on what people really think geopolitically.
“At the moment, they are signalling that they believe the worst may be over. Borrowers are increasingly willing to take on a little more risk for the chance of lowering their monthly payments when the crisis ends and rates start coming down.
“This is valuable intelligence for advisers, not because all borrowers are the same but because it underlines how important the question of risk is for customers and how we must not assume that all borrowers are risk averse. A first-time buyer and someone with a 95% LTV may have identical opinions on international events but they might be in completely different camps when it comes to product type.”
