“This is especially the case given that we are at the possible peak of the rate cycle.”
Perks acknowledged that there are “some redeeming features” to April Mortgages’ products such as no ERCs in certain circumstances and the automatic rate reductions as LTVs drop.
“One thing you can’t deny is that it offers long term certainty and if this is an absolute must have for the borrower, I’d consider placing them with April,” Perks added.
This sentiment was echoed by Lodestone Mortgages & Protection director, Craig Fish, who cautioned that, historically, “we Brits like flexibility”, which is why fixed rates in excess of five years have never been a “popular product”.
“However, higher interest rates and stretched affordability have altered some borrowers’ requirements,” he added.
“While we are not seeing huge demand for these longer term fixed rates, the idea behind them is a solid one and a popular choice overseas in Europe.
“If the higher interest rate environment persists, I expect the popularity of these products to grow.”
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
