Homeowners seek long term fix

Homeowners are increasingly opting for long-term fixed-rate mortgages making it nearly the most popular mortgage product among Brits, according to one lender.

Figures from Abbey show that a large portion of people in the UK would choose a deal of over five years if they were intending to re-mortgage.

"Nearly 40 per cent of homeowners Abbey surveyed recently said they would opt for a fix of five years or longer if they were re-mortgaging tomorrow," the bank said in a statement.

The report continued: "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."

It is thought the slashing of rates on fixed term deals has contributed to the popularity of the packages.

"Lenders are contributing to this demand, reducing rates to make their long-term fixed-rate deals even more attractive," said Abbey.