Brits unsure about fixed rate mortgage deals
Nearly 50 per cent of Britons feel that long-term fixed
rate mortgages is the way forward, Abbey National Building Society
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
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.