More homeowners are opting for longer-term variable rate mortgages because of uncertainty over the direction of interest rates in the future, according to Hamptons Mortgages.
Hamptons’ best buy mortgage tracker found long-term mortgage deals were becoming more popular generally, while the proportion of short-term mortgages is falling. Data from the group shows a rise in the proportion of long-term - over three years - variable rate deals used of 13.11% between September and October, bringing the overall proportion to 23.78%. Long-term fixed rates are also growing in popularity, increasing from 5.91% in September to 10.46% in October. However, the market share of two-year fixed rates has fallen from 27.81% to 22.04%, while two-year variable deals dropped 11.89...
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