Long-term rates on the rise

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Interest rates for long-term fixed rate mortgages have been rising despite two cuts by the Bank of England, according to MoneyExpert.com.

However, the number of mortgage deals with fixed rates lasting ten years or more has increased, something the Government sees as vital to improving housing affordability. According to MoneyExpert.com, fixed rates lasting ten years or more account for around 11.5% of all fixed rate deals in the market, compared with 8.9% in April 2007. MoneyExpert.com says increased demand from consumers has cause lenders to expand into this area, but it has also led to higher interest rates despite recent cuts in the base rate. In April last year, the average interest rate on a long-term product was 5.89...

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