1 Jul

Ten-year fixed-rate mortgages 'increasing in popularity'

Ten-year fixed-rate mortgages 'increasing in popularity'

Abbey has found that ten-year fixed-rate mortgages are continuing to increase in popularity, with one in ten people now saying they would choose to fix for a decade or more.

The bank's latest Remortgage Index showed that five-year fixed-rates products are still favoured by borrowers above all others, with 27 per cent of people choosing this option.

Less than half this number said they would opt for a two-year fix, while ten per cent would go for a tracker or flexible deal.

Paul Cliff, director of Abbey mortgages, commented: "The credit crunch seems to have instilled a longer-term vision among homeowners who want to make sure they are well and truly out of the 'crunch' period when they remortgage again."

Last month Moneyfacts remarked on the increased popularity of five-year fixed-rate mortgages, noting that the average rate for such products is 6.66 per cent, compared to 6.68 per cent for a two-year fix.

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