Demand for three-year fixed rate mortgages has tripled over the last six months while five-year rates decline in popularity, according to research.

Abbey Mortgages claims 21 per cent of homeowners would choose a three-year deal, compared to nine per cent who would choose a two-year fixed rate deal and eight per cent who would fix for five years.

The decline in popularity of five-year deals from a high of 22 per cent last month suggests that borrowers are now more optimistic of mortgages remaining affordable over the short term, possibly fuelled by a number of lenders reducing their rates, Santander-owned Abbey said.

Woolwich, Britannia and Abbey have all reduced their rates recently as funding costs for mortgages come down and competition between lenders increases.

Phil Cliff, director of Abbey Mortgages, said: "We are amongst those lenders who have recently reduced their rates and this seems to have inspired the confidence of borrowers.

"Deals such as our three year fix at 5.69 per cent are proving very popular as mortgagers opt for the middle ground between the short two-year fixes and committing to a five-year deal."

Abbey Mortgages' research also reveals that demand for tracker mortgages has remained steady throughout 2008.

Some 11 per cent of homeowners would opt for a tracker mortgage if remortgaging tomorrow, compared to ten per cent in July and 12 per cent six months ago.

Overall, fixed rate mortgages are increasing in popularity. Approximately 52 per cent would now opt for these products compared with 47 per cent last month and 35 per cent six months ago.

Just over a third (36 per cent) said they were unsure which type of mortgage they would opt for compared with 41 per cent last month.