This equates to less than 7 per cent of the current market, with those that do offer the products doing so at an average of 5.92 per cent.
To further compound this lack of choice, mform.co.uk has revealed that only five lenders are prepared to offer fixed rate mortgages beyond 25 years North of the Borders in Scotland.
Alistair Darling is expected to re-emphasise his point in the March budget, highlighting the fact that these long-term products promote economic stability - a key factor in today's shaky climate.
Research has found that rates on current 25-year fixed deals available direct to the public range from 5.5 per cent to 6.14 per cent. The best rates for two-year deals ranges between 4.25 per cent and 4.75 per cent at the moment.
Francis Ghiloni, mform.co.uk’s marketing and business development director, warned that all aspects of such a deal need to be considered before diving in: “The risks are clear. Not only could borrowers end up locked at a higher rate when interest rates are falling but could also find themselves having to pay redemption penalties if they want to move house.
"It will be interesting to see how the Chancellor intends to make 25-year deals more attractive. So far the mortgage industry does not appear to share his ambition as only seven lenders are offering long-term mortgages.”
Lenders with 25-year deals direct to the public are all building societies and include Norwich & Peterborough, Scarborough, Kent Reliance, Nationwide, Co-Operative Bank, Cheshire and Manchester.
Kent Reliance, which doesn’t sell in Scotland, offers a 25-year deal fixed at 5.5 per cent while Cheshire’s is the highest rate at 6.14 per cent.
The lowest start-up fee is £485 from Norwich & Peterborough, which also doesn’t sell in Scotland, while the highest is £1,286.16 from Nationwide based on a £150,000 mortgage.
