For those who want peace of mind, a number of building societies have introduced new long-term fixed-rate mortgages as well as cutting their existing fixed-rate products.

EBS Building Society is now offering a 10-year fixed-rate mortgage at 6.95 per cent (APR 7.2 per cent), which means a monthly repayment per £1,000 of £7.72 over a 20-year period.

Meanwhile, First National Building Society (FNBS) has introduced two new fixed-rate products, for seven and 10 years. The seven-year fixed rate of 6.85 per cent costs £7.66 per £1,000 borrowed while the 10-year fixed rate is 7.2 per cent or a cost per £1,000 of £7.87.

Mr Martin Walsh, head of lending at EBS, points out that medium and longer term rates have already fallen close to EU averages. While variable rates are expected to fall, fixed rates may not fall much further, if at all, he says.

With EBS fixed rates under 7 per cent right through to 10 years, they offer a real alternative to borrowers who want to eliminate risk, Mr Walsh adds.

See Survey of the Week, page 2