Whilst still making up the majority of mortgages, this proportion has changed from 2008 (68%).
Fixed rate mortgages for four to nine years, the next highest – of which 5-year mortgages are most popular - account for a third of all fixed rate mortgage sales – up from 22% in 2008 to 34%. Longer term loans (over ten years) are the least popular - with a less than 1% take up.
For remortgage customers, 2-year and four to nine years fixed rate products are also the most popular – accounting for 58% and 35% respectively.
To make the most of the increasingly popularity of longer term mortgages, Halifax Intermediaries is launching a new range of 5-year mortgage products.
Available to homebuyers and remortgage customers the new products will be available from 60% LTV to 85% LTV.
Rates on the new 5 year fixed rate products available at 60-75% LTV and 75-85% LTV start from 3.98% for homemovers/first-time buyers at 60-75% LTV, 4.08% for remortgage at 60-75% LTV, 4.84% for homemovers/first-time buyers at 75-85% LTV and 4.94% for remortgage at 75-85% LTV.
Ian Wilson, head of Halifax Intermediaries, said: “We have taken the opportunity to enhance our product range with a suite of new competitive 5-year mortgage products for brokers to offer their clients.
“In terms of the overall mortgage market, 2-year fixed deals have the highest take up. However, buyers are increasingly locking into in longer term deals with 4 to 9 years deals gaining in popularity since 2008.”
