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Long-term mortgages 'still have a place in the market'
Consumers seeking homeowner loans should not ignore the potential of long-term mortgages despite the decline in rates on two-year deals.
Ben Wilkie, editor at magazine What Mortgage, said the current popularity of two-year fixed deals is likely to continue for the near future, but warned that other options may still be suitable to some lenders.
He explained: "If you are taking out a short-term fixed-rate at the moment, in two years when your deal comes to an end, [you might find that] longer term is actually better value.
"It might end up being worth your while having a longer term deal as it might end up being cheaper."
Mr Wilkie added that people should carefully calculate all of the fees and costs related to the mortgage and divide over the length of time they have to pay it for to ensure they are getting the most suitable deal.
Research from Moneyfacts.co.uk recently found that the average two-year fixed rate mortgage deal now stands at 4.86 per cent.