Brokers are helping more clients make their money work harder by fixing their mortgage over a longer term, said Accord Mortgages, which has seen an increasing demand for five-year fixes.
During 2017 the lender saw appetite for five-year fixes grow, particularly among remortgagors with applications increasing 30% in December compared to January 2017.
November saw the biggest month-on-month increase in five-year fix remortgage applications by 10%, after the Bank Rate announcement in November and subsequent rate rise. This trend continued into December with two in five remortgage customers applying for a five-year deal.
David Robinson, national intermediary sales manager at Accord, said: “Our figures show that brokers have navigated clients through the challenges by advising that securing a competitive rate for longer is best for them.
“In the run up to the Bank Rate rise borrowers opted for a five-year fix. Given that’s just a taste of where rates are expected to go, it’s clear borrowers crave the assurance of knowing exactly how much their monthly repayments will be over the next 60 months, which must be a comfort given changeable external factors influencing interest rate flux.”
Accord is set to introduce a fully online product transfer process for borrowers to go direct to lender this year. The lender has also hinted it is considering expanding into the new build buy-to-let market.
It’s online product transfer facility will be available for brokers to use and will pay a 0.3% retention procuration fee.
In further change, Jeremy Duncombe has been appointed director of intermediary distribution at Accord, joining from Legal and General on March 19.