26 Mar

'More long-term deals available'

'More long-term deals available'

There has been a proliferation of long-term fixed-rate mortgage deals hitting the market, but many have high rates, MoneyExpert.com has claimed.

At present, there are 132 of these fixed-rate deals available that last for ten years or over, it said, which make up 11.5 per cent of every fixed-rate offering.

But despite a lowering of the base rate of interest by the Bank of England, these services come with an average initial rate of 6.14 per cent, MoneyExpert.com noted, in some cases rising to 7.59 per cent.

Sean Gardner from the company said that homebuyers are finding that they are in a predicament because of the level of rates.

"Average rates on long-term deals are up, meaning the consequences of making such a big decision are even more severe. If interest rates start to spiral, you'll be laughing," he commented.

However, he added that if rates drop again then money could have been saved if consumers had stuck to short-term products.

Last April, just 8.9 per cent of the mortgage market was open to long-term fixed-rate choices.

Recent conditions seen on the housing market favour buyers, the National Association of Estate Agents has said this week.ADNFCR-1222-ID-18523322-ADNFCR

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