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Demand for fixed-rate mortgages grows
02 September 2008
A new study has shown that an increasing number of homeowners are opting for three year fixed-rate mortgages in the search for the best mortgage deals.
Research by Abbey Mortgages revealed that 21 per cent of homeowners would opt for a three-year fix, compared to nine per cent who would choose a two-year fixed rate deal and eight per cent who would fix for five years.
Abbey claims that the decline in popularity of five-year deals suggests that borrowers are now more optimistic of mortgages remaining affordable over the short term, possibly fuelled by a number of lenders reducing their rates.
Phil Cliff, director of Abbey Mortgages, said: "We are amongst those lenders who have recently reduced their rates and this seems to have inspired the confidence of borrowers."
Fixed-rate mortgages are increasing in popularity, according to the research, as 52 per cent would now opt for these products compared with 47 per cent last month and 35 per cent six months ago.
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