Long-term fixes are back in vogue

Fixed rate products are now firmly back in favour as brokerage John Charcol saw applications for fixed deals in March surge to eight out of 10 new mortgages.

The first John Charcol Mortgage Index, to be released on a monthly basis, shows that the percentage of fixed rate mortgage applications shot up from 29.1% in December to 80.9% in March. Ray Boulger, senior technical manager at John Charcol, says most borrowers should be fixing for five to 10 years.

Robert Winfield, managing director of Chartwell Funding, says it has been advising clients to opt for longer fixes for the last four months.

He says: “We are more interested in giving best advice than putting clients on two-year deals.”