SPML said this would be a result of consumers seeking security against further interest rate rises.
SPML reported two-year fixed rates have been its most popular product in 2006, but that it has experienced a growth in enquiries for longer term fixes since the recent rises in LIBOR and mortgage interest rates.
SPML added it expected non-conforming lenders to compete on flexibility not price in the coming year, as competition and demand from intermediaries leads them to introduce increasingly innovative product features.
Lynsey Mitchell, SPML’s head of sales and development, said: “We believe that underwriting flexibility from lenders, rather than pricing, will be the key driver of business in 2007. 2006 has seen many innovations in underwriting, from affordability calculations, to longer mortgage terms, but we see this being continued even more strongly in the coming year. The changes we have introduced were based upon intermediary research and feedback, and we have been delighted with the response that they have received. We intend to deliver more of the same in 2007.”
