62% of the 573,866 fixed rate mortgage loans in 2013 were for two-year deals, the Halifax has reported. This proportion has changed from 2008 (68%).
Fixed rate mortgages for four to nine years, the next highest – of which five-year mortgages are most popular – account for a third of all fixed rate mortgage sales – up from 22% in 2008 to 34%. Longer term loans (over ten years) are the least popular – with a less than 1% take up.
For remortgage customers, two-year and four to nine years fixed rate products are also the most popular – accounting for 58% and 35% 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% LTV to 85% LTV.
Rates on the new five-year fixed rate products available at 60-75% LTV and 75-85% LTV start from:
- 3.98% for homemovers/first time buyers at 60-75% LTV with a £999 fee
- 4.08% for remortgage at 60-75% LTV with a £999 fee
- 4.84% for homemovers/first time buyers at 75-85% LTV with a £999 fee
- 4.94% for remortgage at 75-85% LTV with a £999 fee
Ian Wilson, head of Halifax Intermediaries, said: “We have taken the opportunity to enhance our product range with a suite of new competitive five year mortgage products for brokers to offer their clients. 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.”