British homeowners want long-term fixed-rate mortgage deals to limit the possibility of facing unmanageable debt levels, according to recent research.
With millions of people struggling to become debt free across the UK, fixed-rate mortgage deals are vastly more popular with British homeowners than those that track the base rate of interest, a study from Abbey has suggested.
In fact, seven per cent of homeowners would currently take on a ten-year fixed-rate deal if they had the option, while for further six per cent a 15-year fix would be most appealing.
“Borrowers need to be sure that the deal they take out is right for them and that they understand the different types of mortgages available before signing up to anything,” said Nici Audhlam-Gardiner, head of Abbey Mortgages.
According to figures from the Credit Action charity, the typical British household currently has a debt management burden worth more than £56,500, including mortgage arrears.