Long-term fixed-rate take-up 'slow'

The number of people who are opting for long-term fixed-rate mortgages is still relatively low it has been revealed.

Despite the chancellor Alistair Darling revealing in his pre-budget report that he plans to encourage homeowners to take on this sort of loan, borrowers are said to be backing away.

Paragon surveyed 200 financial advisers and found that long-term products were still proving less popular than short-term.

John Heron, managing director of Paragon Mortgages said: "Various high street lenders have tried offering long-term fixed-rate products, only to take them off the market shortly after due to a lack of appetite.

"There are advantages and disadvantages of longer-term mortgage deals, but it seems strange that the chancellor is trying to promote ten-year mortgages when there appears to be limited demand from consumers."

According to the figures the least popular products were ten-year and lifetime mortgages.

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