“After weighing up the costs of remortgaging and the fact the gap in rates between longer and shorter term fixes is narrowing, I think more people will opt for these products.”
Mr Morrey agreed that “a lot of the rest of the world have long fixes”, adding that he thought now was the best time for lenders to introduce more to the market.
He thought lenders should be launching 20 to 25-year fixed rates to the market — with early repayment charges only for the first five years — and that the amount of long-term products would go up as economic circumstances became more uncertain.
What do you think about the issues raised by this story? Email us on email@example.com to let us know.