Nearly two thirds of borrowers (63 per cent) say they like the idea of long term fixed rates, according to a financial survey carried out by London & Country. Borrowers who were not keen on the idea of long term fixed rates (37 per cent) said this was down to the level of interest rate (33 per cent), redemption penalties (31 per cent) or because they preferred variable rate mortgages (28 per cent).
London & Country says this seems to indicate that Gordon Brown's plans to promote long term fixed rates will be met favourably. But the broker points out that there has been little take up of those long term deals already available.
Mortgage specialist David Hollingworth says: “Clearly, narrowing the gap between the desirability and the suitability of these products will need to be a high priority for the Chancellor. In their current format long term fixed rates do not fit the bill.”