Lenders try to lock in borrowers

A spokesperson from moneysupermarket.com says it looks as though mortgage providers are striving to secure long-term deals with clients in order to achieve more stability.

Hannah Mercedes Skenfield, website’s mortgages channel manager, commented on the research carried out by the company demonstrating that the number of mortgage products has seen a significant decrease over the past three years.

However, she stressed that five-year fixed-rate deals are a deviation from normal, with this type of deal growing ten-fold during the same period.

Skenfield thinks take-up of such financial arrangements may be rather low, although loan providers will try to lock consumers into long-term deals.

According to moneysupermarket.com, current inflation figures are dramatically affecting savings, and only some products offer a return above inflation.

The site stressed the need to stay vigilant and keep an eye on interest rates, in particular on fixed-term accounts.
 


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