The number of homeowners taking out longer-term mortgages has slumped despite several new entrants to the UK mortgage market arguing that European-style home loans can help solve the housing affordability crisis.
Only 390 new mortgages were taken out with a fixed term of longer than five years in August, according to the trade association UK Finance, down from 1,690 in March last year. They comprised just 0.48 per cent of all new loans.
This is even though there are now 12 banks offering a variety of longer-term deals, from the seven, ten and 15-year fixed rates offered by the main high street banks plus the 25 to 40-year fixes available through newer entrants to the market.
British homeowners prefer either two or five-year fixed rates,
