The popularity of long-term fixed-rate mortgages has grown in recent years, especially among first-time buyers, it has been reported.
According to Mortgage Express, people looking to get onto the property ladder enjoy the “peace of mind” given by fixed-rate deals.
“For most people a mortgage is the biggest financial commitment they will ever undertake and increasing numbers of borrowers have sought the certainty provided by fixed-rate deals in recent years,” explained Tim Anson, head of residential lending at the firm.
However, should interest rates fall in the future, fixed-rate deals may not be the most competitive option, he warned, advising those looking to take out a mortgage to consult an adviser who will take their personal circumstances into account.
According to research by the Council of Mortgage Lenders, 42 per cent of borrowers would opt for a fixed-rate deal if looking to take out a mortgage and over half of this figure would choose a deal which expired in less than five years.
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