Most consumers would opt for long-term fixed-rate mortgage deals

As many as 37 per cent of UK homeowners would choose a 25-year fixed-rate mortgage, new research has indicated.

The survey, conducted by FairInvestment.co.uk, an independent online finance portal, also revealed that 28 per cent of consumers would opt for a medium-term fixed-rate deal.

These findings follow the recent Budget announcement by chancellor Alistair Darling, in which he underlined the benefits of long-term fixed-rate mortgages.

Mr Darling asserted that these deals "protect borrowers from risks and still allow them flexibility to move, or get a new mortgage if rates go down".

Commenting on the research, James Caldwell, director at FairInvestment.co.uk, said: "The fact that the majority of people would go for a long or medium-term fixed-rate mortgage is reflective of the country's nervousness regarding the current economy and the credit crunch.

"At the moment, households are suffering from soaring mortgage repayments as they come off their fixed-rate deals, and some might even lose their homes because they cannot keep up with the payments."

Mortgages News posted on 07/04/2008 13:12:23