According to a survey by Spicerhaart Financial Services consumers are opting to fix their mortgage rates for longer.

Instead of choosing shorter term 2 or 3 year fixed rates in order to shop around more frequently for the best deal, borrowers appear to adopting a more cautious approach in light of recent rate rises by choosing longer term fixed rates such as 4 or 5 year deals.

The actual reason for this shift is only partly due to a cautious approach because recently the cost of ’short-term’ funds for lenders has been more expensive leaving longer term offers more competitive.

However borrowers need to think carefully about entering into a long term fixed rate mortgage because if rates drop during the term of the offer they will be left paying a higher rate and tied in by ‘Early Redemption Penalties’.