67% wary of 25-year mortgages according to Abbey

Abbey has claimed that the Government plans to introduce long-term fixed-rate mortgages would not be popular with most new borrowers.

In a survey of 1,000 people, the Abbey found that only 23% would consider a 25-year mortgage.

Of the rest, 54% said that that they wouldn’t take up such a mortgage, while 23% were uncertain.

Sue Hayes, director of Abbey Mortgages said “It is clear that the public don’t have much of an appetite for 25-year mortgages; this is borne out by Abbey’s own experience; we have launched 25-year mortgage products in the past, all of which had limited demand.”

Reasons given by those not interested in such a long term mortgage include the duration (27%), uncertainty over the future (27%) and the belief that interest rates could fall (23%).