Fixed-rate mortgages are set to become less popular as consumers turn to tracker and discount deals in increasing numbers, a leading lender has stated.

While the latest figures released by the Council of Mortgage Lenders (CML) show that more than three quarters of all mortgages taken out since the start of the year have been fixed-rate deals, GMAC-RFC is predicting a change in the trend before the end of the year as swap rates continue to rise, making variable deals more attractive to borrowers.

"In a rate rising environment it often makes sense for borrowers to take out a fixed rate deal, especially if a future rate rise would mean their monthly mortgage repayments will increase, and this has certainly been the mantra of many a mortgage expert over the last few years," said Julie Gaskin, corporate relations manager at the firm.

"However, the tide is now turning, and fixed rates currently on offer are higher than we have seen for several years, making tracker and discounted deals look increasingly attractive, and in many cases cheaper."

The comments come soon after the CML revealed that mortgage lending in the UK reached record levels in June, totalling £34.2 billion, up from £31.4 billion the previous month.