Long-term fixed rate mortgages are becoming increasingly popular as people prioritize security and stability in their homeownership. According to research from Bloomberg Intelligence, there is a growing demand for more access to long-term fixed mortgage rates.
Mark Eaton, COO at April Mortgages, and Colin Bell, founder of Perenna, highlighted the importance of security in light of recent interest rate increases. Eaton emphasized the need for security and peace of mind when it comes to housing, while Bell noted that people are seeking stability in their homeownership.
April Mortgages offers fixed rate mortgages ranging from five to 15 years with no early repayment charges, while Perenna provides fixed rate terms of up to 40 years with five-year ERC periods.
Eaton and Bell both agreed that the market is dominated by short-term fixed rate mortgages, but there is a growing need for longer-term fixed rate options. They emphasized the importance of introducing more favorable products to shift away from the current norm.
Both Eaton and Bell welcomed the idea of more long-term fixed rate providers entering the market, as longer-term fixes could become the norm in countries like Germany, Netherlands, Denmark, and the US. They see this as an opportunity to provide consumers with more stability and security in their homeownership.
Overall, the conversation around mortgage advice is shifting towards prioritizing security and stability in homeownership, with a focus on long-term fixed rate options.