More and more borrowers are valuing long-term mortgage security, it has been claimed.
According to mform.co.uk, buyers of older and new homes are increasingly turning to long-term mortgage deals to secure themselves against economic uncertainty.
More than 45 per cent of all searches on mform.co.uk's service in the past three months have been for mortgage terms of at least five years.
Before the credit crunch, borrowers tended focused on two and three-year deals, which meant they were free to switch lenders to make the most of the best offers.
Francis Ghiloni, from mform.co.uk, said: "Availability has been the major issue for borrowers this year.
"Given the continuing uncertainty we can understand why it makes sense for borrowers to lock in to longer term deals."
From today, HSBC has cut rates and fees on longer-term fixed-rate mortgage deals. It has also launched a 5.98 per cent five-year fixed-rate deal available to all customers with an HSBC Plus or Premier account.
See Also: Property News (6705)
Date Published: 31 July 2008
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