A large number of homebuyers, particularly first-time buyers (FTBs), opt to take out fixed-rate mortgages.

That is according to Moneysupermarket, which said that borrowers enjoy the peace of mind that comes with such deals.

The firm pointed out that FTBs often stretch themselves to the absolute limits in order to get onto the property ladder and do not want to have to worry about rising rates for at least the first couple of years of homeownership.

"There''s absolutely no doubt that people in the first few years of their home buying lives have to stretch to the absolute maximum of their income," said Louise Cuming from Moneysupermarket.

"So, what they''ll do is take a fixed rate mortgage for peace of mind. They won''t particularly be thinking: ''Let''s gamble on a tracker because rates might go down''.

"They think: ''I can only afford £1,000 a month, if rates go up, I will be stuck''. So that''s the main factor that drives people to fixed rates," she continued.

Recent research from Fair Investment revealed that 57 per cent of borrowers would rather be on a fixed-rate mortgage.