The prospect of interest rates coming off their record lows is prompting potential homebuyers to search for extended mortgages.
Mortgages with a 30-year term, or longer, were considered by 21 per cent of those looking to buy between April and June, according to data published today by the Mortgage Advice Bureau (Mab), a brokers.
Only eight per cent of buyers looked at mortgages that spanned over 30 years in the same period last year.
The typical length of a fixed rate mortgage in the UK is normally two-to-five years. But the Bank of England is expected to raise its base rate around April next year, lifting other borrowing costs.
“With a base rate rise coming into play soon, homeowners who haven’t yet reviewed their existing terms should make the most of the current mortgage climate to secure the best deals,” said the Mab’s head of lending Brian Murphy.