Borrowers are increasingly preferring to take out fixed mortgages for a long term rate as economic conditions continue to remain uncertain.
This is according to a study conducted by Yorkshire Building Society, which has this week (May 14th) been underpinned by more research published by business intelligence provider RFi.
The new data claims that the proportion of borrowers taking out a fixed rate mortgage for more than three years has been rising dramatically since March 2012, with buyers increasingly opting for security in economically unstable times.
February this year saw that 25 per cent of borrowers active on the mortgage market had taken out a long-term fixed mortgage, an increase of 18 per cent on the same study conducted last year.
Yorkshire Building Society corroborated the findings, with the financial services provider adding that it had seen a particularly strong demand for its ten-year fixed rate mortgage, released April 26th.
The deal, which is available with no product fee, has a best buy rate of 3.99 per cent on mortgages up to 75 per cent LTV.
"We know borrowers have been showing an interest in longer term fixed rate mortgages, which is why the time was right for us to launch this latest ten year product," said Yorkshire Building Society product manager Brendan Gilligan.
"With so much uncertainty about the economy at home and abroad, borrowers tend to choose a fixed rate mortgage to make it easier to budget month to month," he added, by way of explaining the popularity of long term fixed rate products.
"Fixing for the longer term is tempting when our current mortgage range is so competitive, and there is an expectation that the Bank of England Base Rate could start to rise."
Yorkshire Building Society also offers a best buy five year fixed rate mortgage at 2.59 per cent for loans of up to 60 per cent LTV, or 2.89 per cent for 75 per cent LTV.
Twitter: My Finances
Join the conversation at #news_myfinances