Seven in ten house-hunters (72 percent) would consider fixing their mortgage for 10 years as a way of providing certainty on financial outgoings, according to new research commissioned by HSBC.
The research, which marks the launch of HSBC’s new 10 year fixed rate mortgage at 2.79%, also revealed that millennials are most likely to seek mortgage stability with almost 8 in 10 (78 percent) willing to consider fixing for 10 years, followed by Londoners (71 percent), those in the North East (62 percent) and Yorkshire & Humberside (51 percent).
The findings also show:
Top reasons for wanting to fix a mortgage for 10 years:
Tracie Pearce, HSBC’s Head of Mortgages in the UK said: “Ten years might seem like a lifetime away, yet our research shows that we like to plan ahead and are currently looking for security. Fixing a mortgage rate for the long term offers customers certainty that their mortgage repayments will not increase over that period.
“Our commitment to offering value to our customers can be seen with our 2 year fixed rate at 0.99%, our 5 year fixed rate at 1.99% and now our new 10 year fixed rate at 2.79%. Fixing a mortgage now can give homeowners important peace of mind, and the new 10 year products offer the assurance that their mortgage rate won’t change regardless of what else might happen with the economy or what the Bank of England Base Rate does."
Read the July EURO 2016 issue of Business Review Europe magazine.