More borrowers are choosing longer fixed mortgages due to political uncertainty, says Leeds Building Society, and it has launched two new products as a result.
The building society has reportedly experienced an increased demand for three-year fixed rate mortgages over two-year deals in recent weeks, although the latter is still the most popular overall.
The first of the new products is a 1.79 per cent legally assisted three-year fixed rate mortgage, at 75 per cent LTV, with free standard valuation and a £999 fee, available until 30 April 2022.
The second new product is a 3.24 per cent purchase-only two-year fixed rate mortgage, at 95 per cent LTV, with free standard valuation and no product fee, available until 31 March 2021.
Both products have a 10 per cent penalty free capital over-repayments permitted each year.
Leeds Building Society director of product and distribution Jaedon Green says: “There’s been a definite spike in interest late this year in three-year fixed rate mortgages, particularly for remortgages.
“Two-year fixed rates are traditionally the most popular mortgage on the market, as the fixed rate provides security, but the commitment isn’t too long.
“The ongoing economic uncertainty because of Brexit may be making more borrowers look for some longer-term security and three years is a useful compromise if they feel five years ties them too far into the future.”