Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Demand for five-year mortgages expected to grow

Demand for five-year mortgages expected to grow

April 9, 2008 by admin  
Filed under News, News-Mortgages

Leave a Comment

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

Tags:

Related Entries

  • Rental market is growing
    • The demand for rented accommodation in the UK is reaching record levels.That is according to Paragon Mortgages, which carried out research and found that a huge majority of landlords are seeing demand for their properties
  • Buy-to-let market set for growth
    • More and more people are choosing not to get a mortgage and are instead renting property.According to Alliance & Leicester, the buy-to-let market is growing rapidly and the firm expects that it will have ballooned
  • High tenant demand benefits buy-to-let investors
    • Confidence in the buy-to-let sector is sky-high, with landlords reporting an increase in average yields and plans to expand their portfolios. A buy-to-let trends survey of landlords by Paragon shows that despite rising interest rates,
  • 100% plus LTV mortgages set to grow in popularity
    • The 100 per cent mortgage market is set to grow, according to industry experts.Brokers were polled by Alliance & Leicester, which reveals today, with 78 per cent predicting that increasing amounts will be taken out
  • Buy-to-let looking good
    • There is a continued high demand for rented properties and this is good news for people with a buy-to-let mortgage.Figures published by Paragon show that rent has increased consistently over the last six months, as
  • Scottish house prices grow
    • Those of you considering taking out a mortgage on a property in Scotland may want to act quickly after prices in the country recently spiked.Figures from Lloyds TSB Scotland show that house prices in Aberdeen,
  • Lloyds TSB: Islamic mortgage demands ‘through the roof’
    • The amount of people taking out Sharia-compliant mortgages has risen dramatically in recent years, according to Lloyds TSB.Islamic mortgages are designed for Muslims who would not want to take out a regular mortgage due to
  • Future demand for buy to let mortgages could fall
    • According to a recent report the demand for buy to let mortgages could fall in the future, as a slow down in the rise of property values hits, lumbering landlords with higher mortgage repayments but

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!