Wednesday March 26, 10:42 AM
More 'Fixes' - But They're Costing More
By Sky News
The number of long-term fixed rate mortgage deals available in the UK has increased during the past year - but they are costing more. There are now 132 mortgages around that are fixed for 10 or more years, new reseach shows. This is despite
a two-thirds drop in the overall number of different mortgages available due to the credit crunch.But while the number of long-term fixes has increased, so have the rates. Homeowners who choose to fix for 10 or more years are now paying an average of 6.14%, with some deals as high as 7.59%. This compares with an average rate of 5.89% a year ago. The base rate of interest set by the Bank of England is currently 5.5%. Sean Gardner, of MoneyExpert.com, said: "Long-term fixed rate mortgages are here to stay. "The Chancellor himself announced his support for lengthy fixed deals in the Budget and lenders have already started to react to demand. "However even though there is now more choice for homeowners, that choice also comes at a higher cost. "If interest rates start to spiral, you'll be laughing. "But if they continue to drop then you could have saved money sticking to shorter term arrangements."
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