Reference Case Number: FOI10184
Freedom of Information: Right to know request:
The number of people who took out 2, 5, and 10 year fixes in each of the last 6 years.
Specifically, I would like to know:
The total number of people who took out a 2-year fixed-rate mortgage in each of the last 6 years.
The total number of people who took out a 5-year fixed-rate mortgage in each of the last 6 years.
The total number of people who took out a 10-year fixed-rate mortgage in each of the last 6 years.
If possible, please provide the information broken down by year.
FCA response:
We have provided in the table below the number of borrowers of 2, 5, and 10-year fixed rate mortgages over the last six calendar years.
| Length of incentivised rate | |||
|---|---|---|---|
| Year of Account Open Date | 2 years | 5 years | 10 years |
| 2017 | 941,605 | 570,132 | 28,502 |
| 2018 | 766,952 | 835,146 | 34,243 |
| 2019 | 694,808 | 893,362 | 29,641 |
| 2020 | 591,689 | 756,194 | 17,203 |
| 2021 | 812,978 | 968,056 | 20,601 |
| 2022 | 518,905 | 1,204,060 | 60,444 |
Source: FCA Product Sales Data (PSD001)
Please note that we collect data on the number of borrowers whose incomes have been assessed in the affordability assessment (equivalent to the number of borrowers named on the mortgage). We record this as ‘1’, ‘2’, ‘3’, or ‘more’.
We have calculated the total number of borrowers by multiplying this figure by the number of mortgage sales. Where ‘3 or more’ is recorded, we have used the figure ‘3’, on the basis that the number of mortgages with more than 3 borrowers is negligible.
On this basis, the above table includes the number of borrowers included in the above affordability assessment.
Please further note that from 2021 onwards, the FCA's Product Sales Data has included internal product transfers [1].
The above table excludes internal product transfers as the number of borrowers assessed for affordability is not recorded in these cases, due to affordability assessments not being required [2].
[1] An ‘internal product transfer’ means where a borrower under a regulated mortgage contract does not change lender but transfers internally to a different mortgage product, or renews their existing product, with no additional borrowing (other than product fees or arrangement fees added to the outstanding amount), whether or not the transfer involves a new regulated mortgage contract.
[2] The FCA Handbook states that the requirement to assess affordability does not apply where the borrower is entering into a new regulated mortgage contract as a replacement for an existing regulated mortgage contract, which does not involve the customer taking on additional borrowing beyond the amount currently outstanding under the existing regulated mortgage contract (see MCOBS 11.6.3[1]).