Two Year Fixed Rate Mortgages More Popular Than Longer Term Fixes

Research by Twenty7Tec has found that finally, 2-year fixed rate mortgage deals have overtaken longer term 5 and 10-year fixed rate deals in popularity after more than 5 years.

At the start if the year, Twenty7Tec suggests just under 25% of fixed rate searches were for 6-10 year terms.  Last month, this had fallen to 12.41% of searches.

These findings are reinforced by lenders also reducing rates ‘across the board’ again.

Comment

This tells us that both lenders, borrowers and mortgage brokers are expecting further Bank of England rate cuts.  Why would you lock into a 5-year fixed rate deal if you expect rates to fall?

That said, the mortgage market is shrinking with lower numbers of ‘seekers’ looking to buy property and therefore, lenders are trying to make themselves more competitive in a shrinking market.