It has also reported that 2.4 million Brits would opt to fix for 10 years and 1.8 million would fix for a massive 15 years if they were re-mortgaging tomorrow. The two-year fix remains the most popular mortgage with 8% or 2.7 million people – saying they would choose this option.
The research has also showed that both 10-year and 15-year fixes are now almost as popular as two-year fixed rates, and demand for long-term fixes continues to increase. However, it seems the majority of borrowers would be in a quandary over which type of deal to opt for – 58% of Brits claimed that they would be unsure of which deal to choose.
Nici Audhlam-Gardiner, head of Abbey Mortgages, said: The research suggests that continued talk of economic gloom has had two effects on borrowers – they are either determined to take the more stable option or are confused about the best mortgage option to take.
There is continued interest in longer terms fixed rate mortgages, reflecting customers’ confusion in what will happen in the markets short term, and also some fatigue with the two year remortgages effort and costs. Borrowers need to be sure however that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything.
