30-07-2007

Majority of borrowers shun long-term fixed-rate mortgages

The majority of borrowers would not consider opting for a 25-year fixed-rate mortgage, new data has revealed.

According to research by Abbey, a recent study of 1,000 respondents has found that 54 per cent would be unwilling to opt for a 25-year fixed-rate mortgage, with 27 per cent of the no group citing fears over being locked-in for a lengthy period.

"It is clear that the public don't have much of an appetite for 25-year mortgages," said Sue Hayes, director of mortgages at Abbey.

"We continue to see increasingly strong demand for our five and ten-year fixed deals, indicating that 25 years is just a step too far," She added.

However, of the 23 per cent of respondents who confirmed themselves to be willing to consider such a deal, 86 per cent cited security as a deciding factor behind their decision.

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