Borrowers are increasingly moving towards long-term fixed rate deals as two-year fixed rates top 7%, according to Spicerhaart Financial Services.
A study of 1000 mortgage transactions in June found borrowers were increasingly looking for long-term certainty and choosing rates that are fixed for four years or more. The proportion of borrowers taking out two-year fixed rate mortgages has fallen to just 18% last month, down from 60% in June 2007. The high cost of two-year deals, due to rising rates in swap markets, may be causing borrowers to look at long-term alternatives. Meanwhile, the popularity of fixed rates of four years or more has risen from just 18% a year ago to 34% last month. Spicerhaart’s operations director Steve Cox ...
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