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Why are five year fixed rate mortgages so popular?

Fixed rate mortgages have gained consistently in popularity since 2010. Today, nine out of ten mortgage customers opt for a fixed rate mortgage and, within this, an increasing proportion of customers now select mortgage products with an initial fixed rate period of five years or more. We asked mortgage intermediaries why longer term, initial fixed rate products have become so popular.

Here's what they said:

FACT Infographic Q1 2019

For more insight into the UK mortgage market, take a look at our regular, Financial Adviser Tracking Confidence Tracking Index (FACT) survey reports.

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View our competitively priced fixed rate accounts currently available

1 Year 0.90%
AER*
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2 Year 1.05%
AER*
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3 Year 1.10%
AER*
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5 Year 1.20%
AER*
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*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded on an annual basis.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551