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Demand for five-year fixed-rates ‘rises’

May 22, 2008 by admin  
Filed under News, News-Mortgages

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Demand has increased for fixed-rate mortgages lasting five years for the third month in a row, according to figures newly released by Abbey.

The bank’s latest mortgage index, which questions 1,000 people who are still paying for their homes, found that three in ten would choose to fix payments for five years if they remortgaged tomorrow.

It noted that interest in such financial products has risen steadily since February, when seven per cent of such consumers said they would prefer a long-term fix.

Abbey commented that demand could be rising because Britons are keen to secure financial certainty.

Phil Cliff, Abbey mortgage director, said that during “uncertain” economic periods, long-term fixes could be reassuring for consumers.

“Whilst the May decision by the Bank of England was to maintain the at five per cent … some commentators even think that inflation could lead to increasing mortgage rates,” he added.

Earlier this month, the Royal Institution of Chartered Surveyors noted that cuts in the base rate are not being passed on to mortgage customers and this is unlikely to improve over the short-term.

Tags: fixed rate mortgages, mortgage, Institution, base rate, Mortgages, periods, bank's latest mortgage, director

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