Long-term fixed-rate mortgages increase

26-Mar-2008

There has been an increase in the number of mortgages with terms of ten years or more over the last year as lenders struggle to meet rising demand for such deals, which could be welcome news for first-time buyers.

However, MoneyExpert has noted that interest rates on this kind of mortgage have also increased as banks aim to reduce their exposure to potentially high-risk borrowers.

Analysis by the group revealed there are 132 individual fixed-rate mortgage products available which have terms of ten years or more.

Sean Gardner of MoneyExpert.com said: "Long-term fixed-rate mortgages are here to stay. The Chancellor himself announced his support for lengthy fixed deals in the Budget and lenders have already started to react to demand by adding long term products to their portfolios."

He advised that choosing this kind of property deal could still be risky if interest rates should carry on falling, however, in which case buyers could save money by sticking to shorter-term arrangements.

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