Longer mortgage deals 'could be an attractive option'

Posted: 14 Jun 2010 12:31:26 GMT

A ten-year, fixed-rate mortgage could be a good option for many consumers, as one expert has outlined the advantages of signing to such a long term.

Andrew Hagger of Moneynet.co.uk believes the 4.99 per cent mortgage from Yorkshire Building Society is an "attractive looking rate".

One of the benefits he points out is the reduced fees that come from longer deals, with consumers only having to pay a single fee rather than a new fee each time a shorter-term contract is renewed.

Mr Hagger said: "It's not just the lending fee you need to consider, there's potentially redemption fees, valuation and legal fees too."

However, he stated that shorter mortgages could offer a lower interest rate, with trackers generally available for two to three per cent above the base rate.

Last month mortgage rates continued to drop, with the Bank of England showing an average two-year, fixed-rate deal at 75 per cent value charged interest of 3.8 per cent.


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