Consumers favouring long-term mortgages
Consumers opting for long-term fixed-rate mortgage deals have doubled over the last month, research by Hamptons best buy mortgage tracker has revealed.
Those choosing fixed-rate products lasting more than three-years grew to 10.46 per cent to 5.91 per cent from September to October, the lender's data has revealed.
Conversely, consumers have fallen out of favour with two-year deals, with those taking up fixed-rate and variable-rate mortgage deals falling by around five per cent and 10 per cent respectively over the same period.
According to IFA online, Hamptons Mortgages managing director Jonathan Cornell believes the trend has occurred because borrowers are "tired of second guessing" interest rate changes.
He said: "It would appear that borrowers are choosing to opt for longer term mortgages as they, like everyone else, are none the wiser as to what will happen."
Nationwide have been the one of the first to pre-empt this trend, announcing that as of November 20th it will cut its ten-year fixed-rate mortgage to 5.68 per cent.
The lender has also recently cut its five and 25-year fixed-rate mortgage deals as well.
Matthew Carter, Nationwide's divisional director for mortgages agrees that "competitive fixed rate deals over a longer term period are becoming increasingly popular".
Those choosing fixed-rate products lasting more than three-years grew to 10.46 per cent to 5.91 per cent from September to October, the lender's data has revealed.
Conversely, consumers have fallen out of favour with two-year deals, with those taking up fixed-rate and variable-rate mortgage deals falling by around five per cent and 10 per cent respectively over the same period.
According to IFA online, Hamptons Mortgages managing director Jonathan Cornell believes the trend has occurred because borrowers are "tired of second guessing" interest rate changes.
He said: "It would appear that borrowers are choosing to opt for longer term mortgages as they, like everyone else, are none the wiser as to what will happen."
Nationwide have been the one of the first to pre-empt this trend, announcing that as of November 20th it will cut its ten-year fixed-rate mortgage to 5.68 per cent.
The lender has also recently cut its five and 25-year fixed-rate mortgage deals as well.
Matthew Carter, Nationwide's divisional director for mortgages agrees that "competitive fixed rate deals over a longer term period are becoming increasingly popular".
