Borrowers abandon one year rates

Tony Alexander's latest monthly survey of the mortgage adviser market reveals a sharp decline in borrowers choosing a one year mortgage.

Only 3% of advisers said one year terms were the most favoured among their clients. In contrast in January, 89% of advisers said one year terms were the most popular. In April, that figure was 39%. 

The appetite for two year loans has remained broadly flat in recent months according to Alexander's survey. 

Three year mortgages are rapidly becoming the most favoured term for clients, the study found.