Following the Bank of England’s decision to increase the base rate there has been a surge in the number of borrowers seeking longer-term fixed rate mortgages, according to Yorkshire Building Society.
The mutual has reported a 13% increase in the number of borrowers applying for a five-year fixed rate mortgage since the Monetary Policy Committee increased Bank Rate to 0.75% on 2 August 2018.
Janice Barber, Mortgage Manager at Yorkshire Building Society, said:
“The Bank’s decision to increase its interest rate has prompted an increasing number of borrowers to turn their attention to fixed rate mortgage deals.
“Five and ten-year fixes have proved popular so homeowners clearly value the stability fixed mortgage rates offer and the peace of mind of knowing exactly what their monthly repayments will be for a period of time.
“The demand for longer-term fixes also suggests mortgage holders expect interest rates to continue rising, and that by reviewing their accounts now believe they may be able to get a better deal while rates are low.”
Article published by Financial reporter - 5 September 2018