Eight out of ten homeowners and renters looking to get onto the property ladder would consider paying a £1,200 premium for a long-term fixed-rate mortgage over a short-term one if it provided greater certainty on mortgage repayments.

Around 83% of people would consider buying a long-term mortgage – ranging from five to 40 years – for greater certainty around monthly mortgage repayments, according to a poll of 2,000 renters and 2,000 homeowners by Kensington Mortgages.

It called the extra cash people are willing to pay for a longer mortgage a “certainty premium”.

But the data found there is a lack of awareness among homebuyers on long-term fixed-rate mortgages.

It found that 26% of renters and homeowners believe the longest fixed-term rate available is between two and five years, just 12% said a long-term house loan can last up to 40 years, while 16% did not know at all.

Fixed-rate loans provide the certainty of set monthly payments for a period, and 59% of homeowners surveyed said they are on a fixed-rate product.

However, 68% of these homeowners do not have a fixed-rate mortgage that lasts longer than five years.

The research says: “Borrowers on a short-term fix will remortgage more than those on a long-term and could pay hundreds of pounds in product fees each time, it also runs a greater risk of not being able to remortgage at the end of the fixed term and being stuck on a higher variable rate.”

The survey also looked at affordability issues for first-time buyers and renters.

It found that one-quarter of renters who attempted to buy a home in the last five years were not successful, and of these, 23% did not pass affordability checks, and a quarter 25% were unable to borrow as much as they needed.

The report says: “Yet many are eager to step onto the property ladder – 70% of renters would consider a long-term fixed-rate mortgage if it meant they could afford to buy instead of rent.

“Even three-quarters of homeowners would consider one next time if it allowed them to borrow more and buy a bigger home.”

However, homebuyers did have reservations about long-term mortgages. A third worried that if interest rates in the wider market fell they would be locked in a deal and unable to move to a product elsewhere.

Another 30% worried about keeping up with payments if their circumstances changed within the loan term, and 26% were concerned about paying fees if they moved home.

Kensington Mortgages chief commercial officer Vicki Harris says: “While mortgage terms of 30 years or higher are the norm, our research shows that the benefits of long-term fixed-rate mortgages are less well-known.

“These products may have higher interest rates than shorter-term mortgages in the early years, but you can often borrow more and they reduce the risk of being unable to remortgage, if any financial circumstances take a turn for the worse after the mortgage is taken out.

“It also acts as a protection against any future interest rate rises.

“For some, it could be the only way to afford a property. And for those who are struggling to step onto the property ladder, speaking to a mortgage adviser about these products could be a serious alternative if they haven’t already been considered.

“That’s why we’re soon launching our own long-term fixed product range to help give borrowers even more choice and flexibility.”

The lender’s survey was conducted by data group Censuswide between 27 and 31 August.