Just over six out of 10 (62 per cent) of the 573,866 fixed rate mortgage loans in 2013 were for two-year deals, according to Halifax.
Although this still makes up the majority of mortgages, this proportion has changed from 2008 when it was 68 per cent.
Fixed rate mortgages for four to nine years, the next highest – of which five-year mortgages are most popular – accounted for a third (34 per cent) of all fixed rate mortgage sales in 2013 – up from 22 per cent in 2008. Longer term loans (over ten years) are the least popular – with a less than 1 per cent take up.
For remortgage customers, two-year and four to nine years fixed rate products are also the most popular – accounting for 58 per cent and 35 per cent respectively.
To make the most of the increasingly popularity of longer term mortgages, Halifax Intermediaries is launching a new range of five-year mortgage products. Available to homebuyers and remortgage customers the new products will be available from 60 per cent loan-to-value to 85 per cent LTV.
- 3.98 per cent for homemovers/first time buyers at 60-75 per cent LTV with a £999 fee
- 4.08 per cent for remortgage at 60-75 per cent LTV with a £999 fee
- 4.84 per cent for homemovers/first time buyers at 75-85 per cent LTV with a £999 fee
- 4.94 per cent for remortgage at 75-85 per cent LTV with a £999 fee
Ian Wilson, Head of Halifax Intermediaries said: “In terms of the overall mortgage market, two year fixed deals have the highest take up. However, buyers are increasingly locking into in longer term deals with four to nine years deals gaining in popularity since 2008.”
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