Abbey Mortgages: Five-year fixes continue to gain in popularity

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Abbey Mortgages: Five-year fixes continue to gain in popularity

Wed 21st May 2008

The nation's appetite for five-year fixed-rate mortgages has increased for the third consecutive month, according to the latest Abbey Mortgage Index.

Of those surveyed by the bank, 30 per cent said they would opt for such a product if they were to remortgage tomorrow, up from 24 per cent in April and 12 per cent in February.

Abbey Mortgages suggests that much of that demand will be stemming from borrowers due to come off fixed-rate deals this year, who are looking for the financial certainty that a five-year fixed-rate offers.

Meanwhile, Briton's taste for two and three-year fixes remained fairly steady at eight per cent and nine per cent respectively.

Phil Cliff, Abbey's mortgage director, said: "Opting for a longer-term fix-rate mortgage will provide mortgage borrowers with financial security in uncertain economic times."

Last week, Abbey announced that it was reducing the rate on its five-year fix product to 5.75 per cent for borrowers requiring a loan-to-value ration of 75 per cent or less.

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