More borrowers favouring longer-term fixes

New evidence supports Yorkshire Building Society's findings that more borrowers are choosing to fix their mortgage for the longer term as economic conditions remain uncertain.

The latest research from global business intelligence provider RFi shows the proportion of borrowers taking out a fixed rate mortgage "long term" (for more than three years) has been rising since March 2012.
 
In February this year, 25% of borrowers who had been active in the mortgage market in the preceding 12 months took out a long term fixed rate mortgage, up from 18% of borrowers a year earlier.
 
The Yorkshire has seen strong demand since launching its latest 10 year fixed rate mortgage on 26 April.
 
The deal has a best buy rate of 3.99% for mortgages up to 75% LTV (loan to value) and no product fee.
 
The Society also offers a best buy five year fixed rate mortgage at 2.59% for loans of up to 60% LTV, or 2.89% for 75% LTV.
 
"We know borrowers have been showing an interest in longer term fixed rate mortgages, which is why the time was right for us to launch this latest 10 year product," said Yorkshire Building Society product manager Brendan Gilligan.
 
"With so much uncertainty about the economy at home and abroad, borrowers tend to choose a fixed rate mortgage to make it easier to budget month to month.
 
"Fixing for the longer term is tempting when our current mortgage range is so competitive, and there is an expectation that the Bank of England Base Rate could start to rise."