Darling says more 25-year fixed rate mortgages key for low paid
Low-income households should be given 25-year fixed rate mortgages, chancellor Alistair Darling has said.
Mr Darling called for ‘greater availability of affordable long term fixes rate’.
The majority of fixed rate mortgages remain popular but only run for up to five years.
Mr Darling said: “For many households, particularly those on low incomes, fixing the level of mortgage repayments for several years makes real sense. It can also contribute to wider macroeconomic stability.”Mr Darling has said the launch of mortgages fixed for 25 years would give homeowners more security, in short supply during the current uncertain financial climate.
Nationwide is currently the only major UK lender offering a 25-year fixed rate mortgage.
The building society, a known supporter of Mr Darling’s views on fixed rate mortgages, revealed its 25-year fixed rate mortgage sold out in just five weeks when launching in March last year.