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The level of demand for fixed interest rate mortgages has fallen to an all time record low of 1 per cent the results of a new survey suggest.

According to a survey conducted by leading mortgage broker Mortgage Choice, only 1.26 per cent of the broker’s loan approvals during December were for fixed interest rate mortgages.

This was the lowest proportion of fixed interest rate mortgages since Mortgage Choice started keeping records in January 2003.

A spokesperson for the mortgage broker said the results suggest that consumers had opted against fixed interest rate mortgages after deciding the extra expense was not worth it.

“When you look at the comparative cost between fixed and floating rates, it’s not at all surprising that almost 99 per cent of our new residential borrowers are choosing variable home loans,” Ms Sheppard said.

“Our lender panel’s average basic variable interest rate is around 1.5 percentage points lower than for the average three-year fixed rate loan, the most popular fixed loan.”

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