According to research by Paragon Mortgages, two year terms were still the preferred length, accounting for 52% of cases. However, terms of five years or more experienced a rise of 9% - a third (32%) of all new cases.
Overall, the results have revealed a marginal decline in shorter fixed terms, with one, two and three year fixes falling by 4% in comparison to the first quarter, as five year fixes gain momentum and increase for the third consecutive quarter.
John Heron, Director of Mortgages, said:
“The second quarter findings highlight the popularity of fixed rate products across the wider mortgage market. Tracker rate products continue to appeal to some but it is no surprise to see a strong preference for fixed rates given the latest guidance from the Bank of England.
“The research continues to point to an increase in the popularity of longer-term fixed rates, it may well be that the attractive rates that have been offered will not be available for much longer.”
