top of page

Borrowers take long-term measures to protect from future rate rises

  • Writer: Mortgage Tree
    Mortgage Tree
  • Sep 14, 2018
  • 2 min read

There has been a steep rise in the number of borrowers looking for longer-term fixed-rate mortgages since the Bank of England (BoE) raised interest rates last month.




That’s according to Yorkshire Building Society which has reported a 13% increase in the number of borrowers applying for five-year fixed-rate mortgages since the BoE’s monetary policy committee voted to increase its base rate by 0.25% to 0.75%.


This surge in interest for the longer-term products would suggest many borrowers want the reassurance of a fixed rate in order to shelter from future interest rate rises, which are widely predicted.


Earlier this week, experts at Money Facts said a quarter-point rise was expected in the foreseeable future.


Its finance expert, Charlotte Nelson, urged borrowers to opt for a fixed deal to protect themselves against future rate rises.


But Janice Barber, mortgage manager at Yorkshire Building Society, said its figures showed many borrowers were already doing this.


She said: “Five and ten-year fixes have proved popular so homeowners clearly value the stability fixed mortgage rates offer and the peace of mind of knowing exactly what their monthly repayments will be for a period of time.


“The demand for longer-term fixes also suggests mortgage holders expect interest rates to continue rising, and that by reviewing their accounts now believe they may be able to get a better deal while rates are low.”


Indeed figures released by Experian’s comparison services in August showed an increase in borrowers looking for fixed-rate deals in July in preparation for August’s predicted rise in rates.


The Yorkshire currently offers a five-year fixed rate of 2.19% at 85% loan-to-value (LTV), with a £1,495 fee, available to both homebuyers and those remortgaging with smaller deposits.

Alternatively, borrowers looking to remortgage and who require a mortgage at 60% LTV could choose a fee-free five-year fix at 2.13%, with free standard valuation and free legal fees.


Posted on September 5, 2018 by Kate Saines in What Mortgage on line.

 
 
 

Comments


Sign Up To Our Newsletter

Stay Connected...

Our Address...

Mortgage Tree

Blake House

18 Blake St

York

YO1 8QG

01904 263012

Mortgage Tree - Mortgage Advisors York - Services & Standards

Mortgage Tree offers a nationwide mortgage broking service from our base near York, North Yorkshire. We specialise in mortgages and insurance. Whether you are a first time buyer or you are a buy to let investor with multiple properties, Mortgage Tree will ensure that you get the most suitable products available.

We are a Whole Of Market broker which means that we will choose the most suitable mortgage for you from the hundreds available on the UK mortgage market. Our network also gets specially discounted deals from lenders which are available to our network.

 

We also provide insurance cover that will give you & your loved ones a blanket of protection that is so vital. We will endeavour to give you the best service that we can at all times.

Jason Gentles t/a Mortgage Tree  (FCA No. 502275) is an appointed representative of Julian Harris Mortgages Ltd (FCA No. 304155), which is authorised and regulated by the Financial Conduct Authority.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages such as commercial BTLs are not regulated by the FCA.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

© 2025 Mortgage Tree  |  Web Design by Studio.END

bottom of page