Abbey Mortgages: 67% wary of 25-year loans

Abbey Mortgages has claimed that Government plans to introduce long-term fixed-rate mortgages would not appeal to most borrowers.

Surveying over 1,000 people, the bank revealed that only 23% said they would consider a 25-year mortgage.

Of the remainder, 54% said that that they wouldn't opt for such a mortgage, while 23% were unsure.

Reasons given by those who wouldn't take up such a long term mortgage include the duration (27%), uncertainty over the future (27%) and the belief that interest rates could fall (23%).

"It is clear that the public don't have much of an appetite for 25-year mortgages," said Sue Hayes, director of Abbey 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."

Last week, it was revealed that 1 in 6 adults aged under 35 would borrow more than 5 times their salary just to get onto the property ladder.