11 Jul

Long-term mortgages rising in popularity

Long-term mortgages rising in popularity

The popularity of long-term fixed-rate mortgages has soared in recent months as borrowers seek stability amid economic uncertainty, according to Spicerhaart Financial Services.

Its monthly mortgage survey revealed that the number of people opting for two-year fix products dropped to 18 per cent in June, having stood at 60 per cent at the same time last year.

Meanwhile, longer-term fixed-rate deals of four years or more are now being chosen by a record 34 per cent of borrowers.

The company notes that security plays a big part in this, but so does money, as most longer-term deals offer lower rates.

Steve Cox, operations director of Spicerhaart Financial Services, commented: "The changes in the mortgage market and the tightening of lenders' criteria coupled with widespread funding issues, have meant that borrowers are keener than ever to lock themselves in for the long term."

The firm recently warned that people could be losing out on as much as £18,000 but not looking around for the best mortgage products available.

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