In its study, the CML found that while the majority wanted a short-term deal, 43 per cent of people surveyed would take a fixed rate of five years or more.
However, consumers would be more willing to take out a long-term fixed rate if they thought it was easier to exit the mortgage before the end of the offer period and it was cheaper for them to do so.
Bob Pannell, head of research at the CML,
said: “In the absence of a major policy intervention from the government, the take up of long-term fixed rates looks set to remain relatively small for the foreseeable future, and the most we are likely to see is some movement from short-term to medium-term fixed rates.”
When it came to flexibility, most consumers had no opinion about how the extra options would be incorporated into the cost of the mortgage, although those who answered mostly preferred a lower upfront rate and an early repayment charge, rather than no redemption charges and a higher rate.
A spokesperson for Alliance & Leicester said: “The take up of five-year fixed rate mortgage products has remained steady. There have been no increases recently with two and three-year fixed rates continuing to remain popular choices.”
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