Long-term fixed-rate mortgages for professionals
Consumers are increasingly showing an appetite for long-term fixed-rate mortgage products, according to research.
The Council of Mortgage Lenders (CML) research commissioned by YouGov shows only 13 per cent would currently choose a variable-rate mortgage.
By comparison, 42 per cent would opt for a fixed-rate mortgage, with over a third of respondents citing peace of mind and managing household budgets as a reason to select a long-term option.
Research by Abbey also revealed that around one third of people would select a five year or more fixed-rate product if they had to remortgage now.
Given the current uncertainty in financial markets, a long-term fixed-rate deal could provide high-earning professionals peace of mind in a potentially volatile period.
Rob Thomas, CML senior policy adviser, explained: "Mortgage lenders' willingness to innovate in this product area suggests that they will be more than happy to meet such demand if it arrives."
The news follows a call from the British Chamber of Commerce that the Bank of England cut interest rates in order to sustain business and consumer confidence and avoid a potential recession.
The Council of Mortgage Lenders (CML) research commissioned by YouGov shows only 13 per cent would currently choose a variable-rate mortgage.
By comparison, 42 per cent would opt for a fixed-rate mortgage, with over a third of respondents citing peace of mind and managing household budgets as a reason to select a long-term option.
Research by Abbey also revealed that around one third of people would select a five year or more fixed-rate product if they had to remortgage now.
Given the current uncertainty in financial markets, a long-term fixed-rate deal could provide high-earning professionals peace of mind in a potentially volatile period.
Rob Thomas, CML senior policy adviser, explained: "Mortgage lenders' willingness to innovate in this product area suggests that they will be more than happy to meet such demand if it arrives."
The news follows a call from the British Chamber of Commerce that the Bank of England cut interest rates in order to sustain business and consumer confidence and avoid a potential recession.
