29 Nov

Borrowers choose stability of fixed rate mortgages

Borrowers choose stability of fixed rate mortgages

Nearly a third of UK homeowners would choose a long-term fixed rate mortgage if they were buying a home now, it has been revealed.

Figures from Abbey show that 5.1 million would opt for the stability offered by the deals - despite the fact that rates have been widely tipped to fall next year.

Of these 15 per cent of homeowners (2.5 million) said they would go for five year fixed rate deals, while 1.1 million (six) per cent said they would favour a ten-year deal.

The remaining nine per cent, or 1.5 million people, meanwhile, would choose to fix for 15 years.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: "For most of us our mortgage is the biggest financial commitment we make so it's understandable that we want to know just how much we're going to have to fork out each month.

"You never know what’s going to happen in the future, but at least if you’ve committed to a long term fixed deal, you know where you are going to stand with your repayments."

She added: "Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything."

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