Many mortgage customers would fix for 25 years
Published On 4 April 2008
A large number of people in the UK would take out a long-term fixed-rate mortgage loan, new research has found.According to a study conducted by the Fair Investment Company, 37 per cent of those questioned would opt for a 25-year fixed-rate mortgage, while 28 per cent said that they would choose a medium-term fixed-rate deal.
James Caldwell, director at FairInvestment.co.uk, noted that this sort of mortgage loan is appealing to Brits because of the credit crunch and the current state of the economy.
He commented: "At the moment, households are suffering from soaring mortgage repayments as they come off their fixed rate deals, and some might even lose their homes because they cannot keep up with the payments."
However, Mr Caldwell noted that long-term deals can be a good option for some borrowers, particularly first time buyers or families on a low income.
Last month, chancellor Alistair Darling said in his 2008 Budget speech that he wants to see a bigger uptake of long-term mortgages.
