30 Jan 2019 An increasing number of borrowers are choosing five-year fixed rate mortgages as Brexit uncertainty prompts people to seek peace of mind when it comes to their home loan, according to Yorkshire Building Society.
The Yorkshire reported a 44%[ rise in the number of borrowers choosing the longer-term mortgage rate last month (December 2018) compared to December 2017, which it says could be a result of the looming deadline for the UK to leave the EU.
Janice Barber, Mortgage Manager at Yorkshire Building Society, said: “While homebuyers’ reluctance to purchase a house during these uncertain times is cooling the housing market, borrowers are rushing to secure new deals that will see them through Brexit and beyond. We’re seeing a significant rise in the number of people taking advantage of competitive longer-term fixed rate deals.”
Yorkshire Building Society responded to demand for longer-term fixes last year by launching seven-year and ten-year fixed rate mortgages.
“Five-year fixes, as well as our seven and ten-year fixed rate mortgages, are proving popular as people look for the security of knowing what their monthly repayments will be for a number of years,” Janice added.
The Yorkshire lets would-be borrowers reserve a mortgage deal up to six months in advance[, meaning those with a home loan due to mature in the coming months can take advantage of today’s deals and secure a rate for the near future should they wish.
Janice said: “Our findings show homeowners clearly value the stability longer-term fixed rate mortgages offer, and may indicate that borrowers are expecting rates to rise.
“Borrowers looking to remortgage this side of summer could start the remortgage process now should they want to take advantage of competitive low rates and get peace of mind that their home loan is arranged regardless of any Brexit outcome.”
Helpful Resource Depending On Your Requirements