Fewer long term fixed rate mortgages available in UK
August 10, 2009
A recent report has claimed that there are fewer long term fixed rate mortgages now available, with a smaller selection of lenders now offering this type of mortgage loan.
In January of last year figures showed that there were around nine lenders that were offering long term fixed rate deals for twenty five years. However, by January of this year this had dropped to just three lenders offering these deals. Worse still, it has now emerged that no lenders are currently offering these twenty five year deals to consumers.
It is thought that the reason why many lenders started offering these longer terms deals in the first place was following calls from the Prime Minister, Gordon Brown, who said that offering twenty five year fixed term rates could help to stabilise the property market. However, the deals quickly began to dwindle and no there are no deals of this nature available at all.
One industry official said: “Providers and brokers alike prefer the frequent turnover of shorter-term deals as they can ensure borrowers are on an appropriate deal for the market conditions.”
Whilst a number of lenders are still offering shorter fixed term mortgages there are fears that the cost of taking out such a mortgage is high, and could continue to increase.
With the base rate at an all time low of 0.5 percent many consumers have been trying to fix their mortgages at a low rate so that they can benefit from greater financial security and peace of mind, but many lenders are taking advantage of the situation by charging hefty fees and charges, as well as demanding higher deposit, which means that many cannot afford to take this course of action.
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- Little choice for those wanting longer term fixed rate mortgages Over recent months the Chancellor of the Exchequer, Alistair Darling, has been pushing for longer term fixed rate mortgages in the UK. Darling believes that longer term fixed rate deals for 20 or 25 years
- What to look out for when choosing a mortgage The world of mortgages has become something of a minefield in the UK over recent years. Not only are there more and more lenders offering a wide choice of mortgages, but the rises in property
- Cheap fixed rate homeowners see light at end of tunnel Customer who are on cheap fixed rate mortgages that are due to come to an end are finally able to see the light at the end of the tunnel after months of fretting over how
- Debt advisors prepare for increased enquiries With thousands of homeowners in the UK due to come off fixed rate mortgage deals in the coming months, debt advisors are preparing themselves for a massive influx in enquiries, as consumers see their mortgage
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