The Financial Blog

The latest Abbey Mortgage Index reveals that 25 per cent of people surveyed by Abbey said they’d go for a 5 year fixed rate mortgage if they had to remortgage tomorrow. Abbey are warning mortgage lenders to brace themselves for a surge in popularity of the 5 year fixed rate mortgage. I wonder how long it will be until we see lenders pulling these mortgage offers from new customers or perhaps withdrawing fixed rate products all together? Nothing would surprise me at the moment.

6 per cent of people surveyed would choose a 25 year fixed rate and just 5 per cent of people would go for a tracker mortgage.

According to industry experts and the latest reports there are 60 per cent less mortgages available now compared to a month before the credit crunch and with the shrinking mortgage market people are looking for some sort of long term security with fixed rate deals.

Last month only 10 per cent of people surveyed by Abbey said they would go for a 5 year a href=”http://www.thefinancialblog.co.uk/click.php?kw=fixed%20rate%20mortgage”>fixed rate mortgage but this has more than doubled to 24 per cent this month.

Director of Abbey Mortgages, Nici Audhlam-Gardiner, comments:  “Recent reports about the shrinking mortgage market seem to have had a profound effect on borrowers. Not too long ago borrowers felt that shopping around regularly was the way to get the best deal, now homeowners faced with a dwindling number of mortgage deals seem keener then ever to lock themselves into a deal for longer than two years such as a five-year fix.”

Even if you’re locking into a 5 year fixed rate mortgage deal you will still need to compare mortgages to ensure you’re getting the best of the rates available today. Click here to compare mortgages now.

This entry was posted on Monday, April 7th, 2008 at 4:23 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.