Lenders looking to long-term fixed rate mortgages

08 August 2007
Lenders looking to long-term fixed rate mortgages

A larger number of lenders are offering long-term fixed-rate mortgages, it has been claimed.

In July, Halifax put their 25-year mortgage on the market in order to protect consumers against interest rate rises, the company has stated.

Spokesperson Paul Fincham added that the best part of such a deal is that it "insulates" buyers against future base rate hikes.

Mr Fincham commented that the length of the deal was "irrelevant" whether it was a two-year deal or a 25-year one.

"The benefit of fixed rate regardless of the term is that you are obviously insulated against any interest rate rises and that's the absolute beauty of it," commented the mortgage expert.

Last week, the Bank of England's monetary policy committee voted to keep the interest rate on hold at 5.75 per cent.

This represents its highest level in over six years.

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