Long term fixed rate mortgages disappearing
Published: 22 July 2009 By MoneyhighStreet Staff Leave a Comment
The number of mortgage lenders offering long term fixed rate mortgages is rapidly diminishing, with only Britannia Building Society now offering 15 year mortgage deals.
It seems with the lack of funds available to mortgage lenders they are pulling away from long term fixed rate mortgages and focusing on short term mortgage deals.
According to moneyfacts.co.uk, only Britannia Building Society now offers a 15 year fixed rate mortgage deal.
Many will not be opting for this though as the interest rates start at 6.49%.
In January 2008, 8 mortgage lenders were offering 25 year mortgage deals, today none are.
Most mortgage lenders are now offering deals of 5 years or less.
That said, as Moneyfacts points out, there are still 9 lenders offering 10 year fixed rate mortgage deals.
It seems that apart from difficulties lenders may have funding long term deals, as we are now in a very difficult recession period, few people are attracted to long term mortgage deals anyway.
Boorwers are attracted to shorter term deals as they feel they give them more flexibility to change if needed.
