Mortgage Information

Mortgage Types


Brits unsure about fixed rate mortgage deals

31/07/2007

Nearly 50 per cent of Britons feel that long-term fixed rate mortgages is the way forward, Abbey National Building Society follows up.

At this stage short term offers and increasing interest rates make lenders switch their mortgage when their standard deal expires, a fee is charged if the mortgage holders decides to switch.

Sue Hayes, Director of Abbey Mortgages commented, “This is borne out by Abbey’s own experience - we have launched 25-year mortgage products in the past - all of which had limited demand. We continue to see increasingly strong demand for our five and 10 year fixed deals.”

More reviews indicated that 86 per cent of mortgage holders thought a fixed rate mortgage gave maximum security, nearly 48 per cent thought a 25 year fix would be attractive due to interest rates increasing each month. 37 per cent stated it would save people remortgaging, leaving 26 per cent saying you could avoid paying switching fees.

Sue Hayes added,  “Given the great cultural and economic changes we’ve seen in the past 25 years, this is not surprising. Few people are prepared to commit themselves to a deal for a quarter of a century.”

Nationwide introduced a 25-year fixed rate mortgage towards the start of 2007, leaving them to release it a month later because borrowers were not interested.