The proportion of borrowers taking out a long-term fixed rate mortgage, i.e. for more than three years, has been rising since March 2012, according to research from global business intelligence provider RFi.
In February this year, 25 per cent of borrowers who had been active in the mortgage market in the preceding 12 months took out a long-term fix, up from 18 per cent of borrowers a year earlier.
Yorkshire Building Society said it has seen strong demand since launching its latest 10-year fixed rate mortgage on 26 April with a rate of 3.99 per cent for mortgages up to 75 per cent loan-to-value (LTV) and no product fee.
The society also offers a five-year fixed rate mortgage at 2.59 per cent for loans of up to 60 per cent LTV, or 2.89 per cent for 75 per cent LTV.
“We know borrowers have been showing an interest in longer-term fixed rate mortgages, which is why the time was right for us to launch this latest 10-year product,” said Yorkshire Building Society product manager Brendan Gilligan.
“With so much uncertainty about the economy at home and abroad, borrowers tend to choose a fixed rate mortgage to make it easier to budget month to month. Fixing for the longer term is tempting when our current mortgage range is so competitive, and there is an expectation that the Bank of England Base Rate could start to rise.”
