Short-term secured loans most popular
31/07/2007Brits are uncertain about taking out a fixed mortgage for an extended period of time, with short-term secured loans a much more popular option according to new research.
The Abbey poll comes after the government announced plans to support 25 year fixed mortgages in a bid to increase access to the housing market, something the study suggests would not see widespread participation.
Of the 1,000 people surveyed just 23 per cent said they'd consider a 25 year fixed mortgage, with 54 per cent saying they never would and a further 23 per cent uncertain.
It seems clear that being tied into a financial product for that long is simply not attractive for most borrowers, particularly as they intend to pay their loan back over a sensible time period: taking a secured loan is one such way you can flexibly manage your finances.
"It is clear that the public don’t have much of an appetite for 25 year mortgages," said Sue Hayes from Abbey.
"We continue to see increasingly strong demand for our five and 10 year fixed deals, indicating that 25 years is just a step too far. Given the great cultural and economic changes we've seen in the past 25 years, this is not surprising.
"Few people are prepared to commit themselves to a deal for a quarter of a century," she added.
 © Adfero Ltd
<< Back to News page
|