The long-term fixed rate mortgage market has come to an end, as Manchester Building Society withdraws its 30-year fixed rate product.

Now, according to Moneyfacts.co.uk, the longest period which a borrower can fix their mortgage for is 15 years.

In July 2007, Prime Minister Gordon Brown said that longer term fixed rate mortgages would help to reduce the volatility in the housing market, and as a result a number of lenders moved to offer such deals. Today, however, that market is disappearing.

In January 2008 there were eight lenders who were offering 25-year deals.

This reduced to just three lenders by January this year, while today no lenders remain offering such products.

Darren Cook, spokesperson for Moneyfacts.co.uk, said: "Raising the capital when interest rates are so low is difficult. Investor expect a higher rate of return than those currently being offered for terms of ten years plus, as the only way for base rate to go from here is up.

"With so little funds available, lenders are concentrating on their core business of shorter term deals.

"Britannia Building Society is the only lender to offer 15 year deals, but with rates starting at 6.49 per cent, these are likely to be unattractive to many borrowers."

Furthermore, only nine lenders are currently offering ten year deals, with the majority of the market offering deals of no longer than five years.

Cook added: "Long term deals may be unappealing to borrowers, particularly in an unsettled economic environment.

"Borrowers currently do not want to be tied in to long term deals and instead prefer stability in the short term, with have the freedom to make crucial changes afterwards.

"Providers and brokers alike prefer the frequent turnover of shorter term deals as they can ensure borrowers are on an appropriate deal for the market conditions."

SOURCE: Financial Times