Long-term mortgages becoming more popular

Wed, 15 Feb 2012

Homeowners concerned about the prospect of their property being repossessed may wish to consider a long-term mortgage deal in the future.

According to Ben Wilkie, editor of What Mortgage, five and ten-year home loan packages will become increasingly popular over the course of the coming years even though Britons traditionally prefer shorter-term products.

Mr Wilkie explained that a growing number of banks and building societies are now creating mortgages that are "more attractive" to borrowers seeking added security in the present fragile economic climate.

"There is a bit more choice in the market and there is quite a lot more competition in the UK than there is in almost any other market," he noted.

Earlier this week (February 13th), the Council of Mortgage Lenders revealed that the number of new house purchase loans granted in December 2011 increased by seven per cent year-on-year.

But Mr Wilkie went on to say this trend may not last as people are becoming more eager to stick with one provider for an extended period of time.

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