Consumers want long-term mortgages, says Abbey

Abbey is launching a new ten-year fixed mortgage deal as its research reveals people prefer a long-term deal.

The bank’s remortgage index shows that 11 per cent of people would currently choose a ten or 15-year rate if they were to take out a new deal.

Five-year deals are even more popular, with 27 per cent saying that would be their preferred option, twice as many as would pick a three-year fixed-rate mortgage.

Joe Cliff, director of Abbey’s mortgage division, said: “The credit crunch seems to have instilled a longer-term vision among homeowners who want to make sure they are well and truly out of the ‘crunch’ period when they remortgage again.”

The new ten-year deal has a fixed interest rate of 6.24 per cent and is subject to a £999 fee.

Nationwide recently cut rates on its fixed-rate mortgages by up to 0.27 per cent.

© Adfero Ltd

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