Long-term fixes 'have a future'

Long-term fixed-rate mortgages will still be popular with a section of the market in the future despite there being a number of barriers to wider take-up, according to the Council of Mortgage Lenders (CML).

The organisation has said that research shows that 43 per cent of those looking to take out a fixed deal would prefer a deal lasting five years or more.

This is despite a number of lingering worries over such products, such as the fear of losing out should rates fall and a lack of flexibility.

"Measures that would trigger really significant demand for long-term fixed rates are potentially controversial or costly. But mortgage lenders' willingness to innovate in this product area suggests that they will be more than happy to meet such demand if it arrives," said CML senior policy adviser Rob Thomas.

The number of approvals for house purchase fell sharply in October, according to the latest figures from the Bank of England.

Finance your build or renovation with one of BuildStore's unique finance packages


© Adfero Ltd