Twitter Facebook RSS FEEDS

UK mortgage borrowers look for stability

Tuesday, 29 July 2008 12:00 AM

New figures reveal Brits are increasingly turning to long-term mortgages in their search for financial stability.

According to mortgage comparison service mform.co.uk, more than 45 per cent of searches for mortgage deals in the past three months have been for terms of five-years or more,

This contrasts with the pre-credit crunch market, where borrowers focused on two and three-year deals so they were free to move from lender to lender to cash in on the best offers.

It appears, however, stability is now paramount to flexibility.

"Availability has been the major issue for borrowers this year as the mortgage market has at times descended into mayhem with products withdrawn at short notice and rates rising and then falling," said Francis Ghiloni, marketing and business development director at mform.

"Given the continuing uncertainty we can understand why it makes sense for borrowers to lock in to longer term deals so that they can plan their future and have a degree of stability and security.

"They're opting to take a deal and then sit out the mortgage merry-go-round until it settles down."

The research supports findings from MoneyExpert.com, which show lenders are offering an increased number of long-term mortgages in the wake of the credit crunch.

According to the price comparison website, the number of mortgage products over ten-years in length has increased from eight to 15 per cent of the market in the last year.

Analysis from mform also shows the best rates on five-year deals are currently just under six per cent compared with 5.49 per cent for the best two-year deals and 5.79 per cent for top three-year offers.

Abbey today also confirmed the rise of long-term fixed-rate mortgages, with 60 per cent of the bank's own customers remortgaging with fixed-rate deals of three years or more.

Chris O'Toole

Related stories

An increase of £100 a month would leave 20 per cent not having enough for essentials and 11 per cent unable to pay the mortgage. Image:Thinkstock

Mortgage rate hike for one million borrowers today

Seven out of ten mortgage holders worried about increase in rates, says Which.

 Over-regulation could shut some out

Will mortgage proposals freeze out borrowers?

House purchase loans could be harder to get if FSA proposals go through, it has been suggested.
Bath Crescent

UK mortgage market to remain tough in 2011

Despite the CML's announcement that the market grew by 21% in March, analysts believe that obtaining finance will remain difficult.

 Homeowners urged to do the maths before switching mortgage lenders

Borrowers urged to do the mortgage maths

Homeowners must work out the cost effectiveness of changing mortgage provider before switching, it has been claimed.
Mortgage payment reminder

Struggling borrowers must tell lenders says Which?

Seven in ten people are worried about mortgage rates but just a third struggling with repayments have approached their lender for help.

 Downsizing, moving to a cheaper area and equity release seen as main ways to use home to supplement retirement income. Image: Thinkstock

Over-50s look to homes to boost their pensions

Downsizing, moving to a cheaper area and equity release seen as main ways to use home to supplement retirement income.

Borrowers do not know mortgage details

Borrowers 'do not know their mortgage rate'

Borrowers 'do not know their mortgage rate'

 Stacks of cash

Six face jail over biggest-ever UK mortgage fraud

It has been alleged that six solicitors tricked banks and building societies into loaning them almost £50m for properties worth £6m.
First-time buyers viewing a property

No deposit required for new 100 per cent mortgage

Could the first 100 per cent mortgage of recent times be a sign that the banks are suffering amnesia? Aldermore reckons not.

 Most mortgage fraud is due to home buyers exaggerating their income to afford a more expensive property.

Big surge revealed in UK mortgage fraud

Most fraudulent applications come from people misrepresenting their finances to buy a home that is out of reach, says Experian.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.