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Long term fixes 'on the increase'

The number of fixed rate home loans lasting ten years or more is increasing, new research has suggested.

Customer nervousness in current economic conditions could be leading to a desire to 'lock in' to a home loan rate - explaining the growing popularity of long-term fixes.

The new analysis suggests that there are now 132 home loans which carry a fixed rate of over ten years - around 11.5 per cent of total fixed rate deals.

This is an increase over last April, when the figure was just 8.9 per cent.

The study was carried out by financial website MoneyExpert.com.

Commenting, analyst Sean Gardner said: "Even though there is now more choice for homeowners, that choice also comes at a higher cost - average rates on long term deals are up, meaning the consequences of making such a big decision are even more severe.

"If interest rates start to spiral, you’ll be laughing. But if they continue to drop then you could have saved money sticking to shorter term arrangements."

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