21
May
Demand for five-year mortgages increases again
The latest Mortgage Index from Abbey has found that the demand for
five-year fixed-rate mortgages has grown for the third month in a
row.
When asked by the bank what product they would opt for if
remortgaging tomorrow, 30 per cent of respondents said they would
go for a five-year fix, up from 24 per cent the previous month and
12 per cent in April.
Meanwhile, Britain's appetite for two and three-year fixed-rate
mortgages remained steady at eight and nine per cent
respectively.
The bank suggested that much of the demand could be originating
from the 3,835 people coming off fixed-rate deals this year.
"Opting for a longer-term fix-rate mortgage will provide mortgage
borrowers with financial security in uncertain economic times,"
Abbey's mortgage director Phil Cliff commented.
This latest news comes after Abbey announced last week that it was
reducing the rate on its five-year fixed mortgage for borrowers
with a loan-to-value ratio of 75 per cent and under to 5.75 per
cent.
