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Longer Term Rates for Home Loans Rise Steeply - The Times July 09

Borrowers hoping to fix their mortgage payments for five years can now expect to pay a rate of 6 per cent as banks have rapidly increased the cost of longer term loans.

Five year fixed rates  have jumped sharply in response to expectations that interest rates will be considerably higher in the future. But brokers said the rapid increases also reflected banks' unwillingness to take on new lending.

Fixed rate mortgage rates have been popular in recent months as borrowers have sought security amid the uncertain economic enviroment.