The uncertainty over interest rates is making long-term fixed rate mortgages look increasingly attractive to consumers, according to the financial information group, Moneyfacts.
The group said mortgages fixed for 10 years or more had so far proved unpopular with borrowers. However rising interest rates and the prospect of further increases means that some consumers are starting to be attracted by the security offered by fixed-rates.
Jane Dawson, from Moneyfacts, said: "There has been little interest in long-term fixed rates from borrowers so far. But another increase in the Bank of England base rate will have left many homeowners wondering just how many more rises they are going to have to take."
She added: "The certainty of a rate fixed for 10 years or even longer is likely to be far more tempting to borrowers now than it has been before."
Only a few lenders currently offer long-term fixed rate loans, including Abbey, HSBC and the Woolwich, but it is likely that more mortgage firms will start to offer similar products in the near future as demand increases.DeHavilland Information Services plc