The Money Stop

The number of homeowners looking for longer-term fixed mortgage deals is set to rocket, a leading bank has reported.

Research by Abbey Mortgage Index has shown that buyers seeking a fixed deal lasting five years have doubled in a month to 24 per cent.

The popularity of two-year fixed-term deals rose by just three per cent to 10 per cent.

This is in contrast to tracker mortgages which only five per cent of borrowers said they would opt for.

Nici Audhlam-Gardiner, director of Abbey Mortgages, said: “Recent reports about the shrinking mortgage market seem to have had a profound effect on borrowers.”

Abbey advised mortgage providers to prepare for a rush on longer term deals as borrowers seek stability amid the credit crunch.

The decrease in the availability of mortgage deals is guiding homeowners towards more lengthy mortgages suggests Ms Audhlam-Gardiner.

“Homeowners faced with a dwindling number of mortgage deals seem keener than ever to lock themselves into a deal for longer than two years such as a five-year fix,” she added.

Statistics by Moneysupermarket.com revealed that mortgage deals have decreased by 60 per cent compared to before the economic slowdown

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