The share of borrowers opting for tracker mortgages has trebled since the outbreak of the war in Iran, analysis by Stonebridge network has found.
The proportion of borrowers opting for trackers reached 12% in April up from 4% a year earlier.
Stonebridge chief executive Rob Clifford believes the speed at which the balance has shifted reflects a degree of consumer confidence and financial resilience.
The fact that more people are opting for tracker suggests that those borrowers are not at the limit of affordability, could withstand an increase in rates, but are confident that the conflict and subsequent inflation shock will end relatively quickly, he says.
The proportion of fixed rate deals fell to 88% last month, down from 95% a year earlier.
Clifford says: “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.”
