Borrowers are favouring short term two-year fixed rate mortgages over longer term deals as competition begins to return to the mortgage market, according to Spicerhaart Financial Services' monthly mortgage survey.
The figures show 32% more borrowers opted for a short term two-year fixed deal in August while the number of longer term fixed rates dipped by 12%. However, despite the level of two-year fixed rate deals being at its highest for four months, they are still down by over 52% from August 2007. Steve Cox, operations director of Spicerhaart Financial Services, comments: “Borrowers are now attracted to short terms deals thanks to the drop in lending rates, with the average two year fixed mortgage rate now standing at 6.39% compared to 7.08% in July. “Previously consumers were looking for th...
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