A poll on the What Mortgage website has found that the majority of participants would be in favour of the return of 30 year mortgage deals to the British market.
When asked; ‘would you take out a 30 year fixed rate mortgage if they are reintroduced?’, 50 per cent of respondents said they would, as they would not have to worry about rising interest rates, 30 per cent said they would consider it but would need more information, while 20 per cent said they believe shorter term deals are a safer option.
At the beginning of the year the Bank of England revealed that it was looking at reintroducing 30 year fixed rate mortgages to avoid the much hyped potential housing bubble.
The Bank believes that fixing rates now could avoid considerable increases in interest in the next few years.
At the time Peter Rodd, a spokesperson for the Conveyancing Association and senior partner at Boys and Maughan Solicitors, said: “There can be little doubt that people are becoming increasingly comfortable with long term mortgages. They have the advantage of reducing the borrower’s monthly costs but, of course, also increase the overall amount that is eventually paid back.
“Such mortgages could be seen by many as the only affordable option when faced with the Financial Conduct Authority’s so-called ‘stress tests’ which lenders will be fully implementing by the end of April. Under the tests borrowers are not able to take on loans unless they can show how they could afford to repay them when interest rates rise.”
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