Longer term mortgages popular with first-time buyers

Longer term fixed rate mortgages have proven “increasingly” popular in recent years, especially with first-time buyers, claims an industry expert.

Head of residential lending at Mortgage Express, Tim Anson, has said that newcomers to the market appreciate the “peace of mind” offered by fixed deals.

Purchasing a property through a fixed deal allows first-time buyers the chance to get used to managing a budget and meeting the costs of running their first home.

“For most people a mortgage is the biggest financial commitment they will ever undertake, and increasing numbers of borrowers have sought the certainty provided by fixed rate deals in recent years,” he said.

However, as interest rates are predicted to fall in 2008, fixed rate deals could look uncompetitive in the future Mr Anson warned.

Last week the Council of Mortgage Lenders reported that 42 per cent of borrowers would choose a fixed rate mortgage.

However over half of these would opt for a short term deal under five years long.

Tags: chance, Business Finance, newcomers, fixed rate deals, Tim Anson, Head of residential lending