Two-year deals 'the most popular fixed-rate mortgages'

The most popular fixed-rate mortgage products at present are two-year deals, it has been reported.

According to Paragon Mortgages, 84 per cent of brokers rate 24-month deals as being the most, or second-most popular mortgage deals available on the market.

Some 63 per cent said they were the preferred product among customers, with three-year deals being the next best option.

Mortgage deals which see interest rates fixed for the full term were named as the most unpopular by 49 per cent of survey respondents.

John Heron, Paragon Mortgages' managing director, said: "Borrowers opting for fixed-rate deals don't want to be tied into long-term arrangements.

"Two-to-three year deals seem to be popular because they offer the borrower immediate security, but also the flexibility to change their mortgage in the medium term."

Last week, Ben Wilkie, editor at What Mortgage, claimed that the longer the Bank of England freezes interest rates at 0.5 per cent, the greater the chances of cheap mortgages becoming available.

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2010-05-13 13:36:06 © Moneyextra.com