Surge in demand for five-year mortgage deals

Demand for five-year fixed rate mortgages has surged to the point where they will soon overtake two-year fixes as the nation’s favourite home loan. According to UK Finance, just under half of borrowers are on five-year fixed rate deals,— a rise of more than 50% in four years. In 2017, it was three in ten. Brokers say borrowers are shunning two-year deals in favour of longer fixes amid growing anxiety about hikes in interest rates and the cost of living. The Bank of England raised the base rate from 0.1% to 0.25% last month, and inflation was at a ten-year high of 5.1% in the 12 months to November. The best five-year deal for those with a 40% deposit.

The Times (03/01/2022)