Mortgages

Borrowers turning to longer-term fixed rates

Rozi Jones
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31st January 2019
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"Five-year fixes, as well as our seven and ten-year fixed rate mortgages, are proving popular"

An increasing number of borrowers are choosing to fix their mortgages for five years or more, according to Yorkshire Building Society.

The Society reported a 44% rise in the number of borrowers choosing longer-term mortgage rates last month compared to December 2017, which it says could be a result of the looming deadline for the UK to leave the EU.

Janice Barber, mortgage manager at Yorkshire Building Society, said: “While homebuyers’ reluctance to purchase a house during these uncertain times is cooling the housing market, borrowers are rushing to secure new deals that will see them through Brexit and beyond. We’re seeing a significant rise in the number of people taking advantage of competitive longer-term fixed rate deals.

“Five-year fixes, as well as our seven and ten-year fixed rate mortgages, are proving popular as people look for the security of knowing what their monthly repayments will be for a number of years.

“Our findings show homeowners clearly value the stability longer-term fixed rate mortgages offer, and may indicate that borrowers are expecting rates to rise.

“Borrowers looking to remortgage this side of summer could start the remortgage process now should they want to take advantage of competitive low rates and get peace of mind that their home loan is arranged regardless of any Brexit outcome.”

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