More borrowers choosing fixed rates
The research supports earlier from findings from the Yorkshire Building Society’s which found the proportion of borrowers taking out a fixed rate mortgage “long term” (for more than three years) has been rising since March 2012.
In February 25% of borrowers who had been active in the mortgage market in the preceding 12 months took out a long term fixed rate mortgage, up from 18% of borrowers a year earlier.
The Yorkshire recently launched a 10-year fixed rate mortgage which it said has been in strong demand.
The Yorkshire’s 10-year fixed is available at 3.99% for mortgages up to 75% loan to value and does not have a product fee.
The Society also offers a 5-year fixed rate mortgage at 2.59% for loans of up to 60% LTV, or 2.89% for 75% LTV.
Brendan Gilligan, product manager at the Yorkshire Building Society, said: “We know borrowers have been showing an interest in longer term fixed rate mortgages which is why the time was right for us to launch this latest ten year product.”
“With so much uncertainty about the economy at home and abroad, borrowers tend to choose a fixed rate mortgage to make it easier to budget month to month.
“Fixing for the longer term is tempting when our current mortgage range is so competitive and there is an expectation that the Bank of England Base Rate could start to rise.”