Professor Miles presented his report on the UK fixed rate mortgage market on March 12 this year. Just prior to Miles' announcement of his final recommendations, Cheshire followed up earlier research with YouGov to assess whether public opinion on longterm fixed rate mortgages had changed in the two months following Miles' interim report (in December 2003) and the further quarter point interest rate increase introduced by the Bank of England in February this year.
This research shows that:
29% of people are now more likely to consider taking out a fixed rate mortgage as a result of the recent rises in interest rates
Since last November, 15% more people would consider taking out a 25-year fixed rate mortgage (from 8% to 23%)
The most favourable term for a long-term fixed rate deal is five years and the next most popular is 10 years.
The survey took place between March 5 and March 8 this year and questioned 1703 people with mortgages.
This research highlights a growing band of mortgage holders who are finding comfort in fixing their mortgage repayments for the longer term. Secure in the knowledge that they know exactly what payments they will be making, those who choose to take a long-term fixed rate can now budget more effectively than ever before.