11
Jul
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.
