Abbey: Demand for long-term fixed-rate mortgages increasing

10 October 2007
Consumer appetite for fixed-rate mortgage products is continuing to rise, according to one expert.

Nici Audhlam Gardiner, head of mortgages at Abbey, said that approximately 40 per cent of the homeowners surveyed by the firm said they would favour a fixed-rate of five years or more if they were to remortgage.

"That's almost the same as the number of people who would opt for a two-year fix - previously the most popular type of product," Ms Audhlam Gardiner remarked.

Lenders are also helping to boost demand for such products by reducing their rates to make these deals "even more attractive" to consumers, she added.

The Council of Mortgage Lenders recently reported that fixed-rate products accounted for 78 per cent of mortgages in August this year, compared with 59 per cent during the same month in 2006.

However, the organisation suggested that with interest rates predicted to fall, tracker rate products may become increasingly popular.

Find out more about fixed-rate mortgages.

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