The Chancellor has called for mortgage lenders to adopt a longer term approach as they loan money to Britain’s 12 million mortgage burdened homeowners . Alistair Darling has called for lenders to offer fixed rate home loans for up to 25 years to provide homeowners with greater security. Currently, fixed rate mortgages are only typically available for up to five years. Mr Darling is eager for these loans to be offered at reasonable rates as Britain looks for stability following the credit crunch.
Fixed rate mortgages have become increasingly popular in recent years, with an estimated 65 per cent of mortgages taken out at a fixed rate . At present, Nationwide is the only prominent UK lender to offer a 25 year fixed rate deal, offering a rate of 5.98 per cent. With the Chancellor set to reveal his first budget next month, Mr Darling is also expected to call for lesser penalties for borrowers looking to quit their mortgage early.
Chancellor Calls for Longer Fixed Rate Loans
Fri, 08 Feb 2008
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