1
Jul
Ten-year fixed-rate mortgages 'increasing in popularity'
Abbey has found that ten-year fixed-rate mortgages are continuing
to increase in popularity, with one in ten people now saying they
would choose to fix for a decade or more.
The bank's latest Remortgage Index showed that five-year
fixed-rates products are still favoured by borrowers above all
others, with 27 per cent of people choosing this option.
Less than half this number said they would opt for a two-year fix,
while ten per cent would go for a tracker or flexible deal.
Paul Cliff, director of Abbey mortgages, commented: "The credit
crunch seems to have instilled a longer-term vision among
homeowners who want to make sure they are well and truly out of the
'crunch' period when they remortgage again."
Last month Moneyfacts remarked on the increased popularity of
five-year fixed-rate mortgages, noting that the average rate for
such products is 6.66 per cent, compared to 6.68 per cent for a
two-year fix.
