New research by fairinvestment.co.uk has shown that British homeowners are still opting for fixed rate mortgages, even though interest rates are rising sharply.

Even though the interest rates that come with fixed rate mortgages are hitting a new ten year high, a third of people questioned said they would go for a medium term fixed rate mortgage, while 25% of those surveyed said they would still stick with a short term fixed rate mortgage despite the costs.

The director of fairinvestment.co.uk, James Caldwell, said: "Our research was surprising considering how high mortgage rates are in the current market. For 25 per cent of our respondents to say they would choose a short term year fixed-rate (up to five years), despite the fact they are unlikely to find a rate under 7 per cent, suggests that people do not have much confidence in the chances of the mortgage market recovering within the next five years."