The Leeds Building Society has claimed that Brexit uncertainty may be behind the fact that borrowers are considering fixing their mortgage for longer.
The Society has seen increased demand in recent weeks for three year fixes over two year deals, although that term has remained the most popular overall.
In response the Society has added to its range of fixed rate mortgages with a new three year product at 1.79%, available up to 75% LTV (loan to value).
The deal comes with incentives including a free valuation, and fees assisted legal services on standard remortgages.
“There’s been a definite spike in interest late this year in three year fixed rate mortgages, particularly for remortgages,” said Jaedon Green, Leeds Building Society’s director of product and distribution.
“Two year fixed rates are traditionally the most popular mortgage on the market, as the fixed rate gives security but the commitment isn’t too long.
“The ongoing economic uncertainty because of Brexit may be making more borrowers look for some longer-term security and three years is a useful compromise if they feel five years ties them too far into the future.”
The Society has also launched a new high LTV two year fixed rate mortgage this week – at 3.24% up to 95% LTV with no product fee.