3 Sep

Homebuyers encouraged to take out five-year loans

Homebuyers encouraged to take out five-year loans

Homebuyers looking to purchase a house for sale in the UK have been told to take advantage of five-year mortgages.

Sales and marketing director at Leeds Building Society Kim Rebecchi said that in "the current climate, locking into a fixed-rate deal for a five-year period has many benefits".

She added that these include "certainty, peace of mind and the ability to limit monthly outgoings" during a period where the economy faces the prospect of a double-dip recession and falling housing prices.

This comes after the financial services provider launched its five-year fixed-rate deal at 3.94 per cent earlier this week.

Ms Rebecchi stated that it will help homebuyers to budget and have certainty with their monthly expenses.

She added that this deal is likely to be popular among homebuyers who wish to climb the property ladder in a few years as the fixed-rate mortgages are portable between homes.

Earlier this week, home loan provider Godiva announced its three-year fixed-rate loan at 3.39 per cent on properties with loan-to-value of 65 per centADNFCR-1222-ID-800051768-ADNFCR

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