Two year fixed rate deals ranked as the most popular mortgage deal

6/11/2007

An assessment of 200 financial advisers proved that two-year fixed rate deals were ranked as the most popular mortgage deal.

Council of Mortgage Lenders statistics show that in 2006 a record 66 per cent of all new mortgages were taken out at fixed rates. Through that time, it had increased rising to 75% towards the start of 2007 and 77% in the second quarter.

Borrowers still understand the advantages of a fixed rate mortgage deal. With interest rates increasing each month they feel this is their only security.

Many high street lenders have tried presenting long-term fixed rate products, simply to take them off the market after due to a lack of interest.

Managing director of Paragon Mortgages, John Heron commented: ‘There are advantages and disadvantages of longer-term mortgage deals, but it seems strange that the chancellor is trying to promote 10-year mortgages when there appears to be limited demand from consumers.’

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