Chancellor Recommends More Long-Term Mortgages
Chancellor Alistair Darling would like to see 25-year fixed-rate mortgages become more common in the future.At present, most fixed-rate mortgages run only five years.
Many households, especially those with lower income, will benefit from fixed-rate mortgage repayment plans that run for a long term. Mr. Darling believes that making those products available will help to stabilize the economy.
Currently in the UK, a 25-year fixed-rate mortgage is available only through Nationwide.
Alistair Darling’s comments recently gained the approval of the building society. The 25-year fixed-rate mortgage on offer that became available last March sold out in only five weeks, says the society.