Benefit of Fixed Rate Mortgages Seen

Posted 2008-02-17

With the majority of fixed rate mortgages offered only lasting for five years, Chancellor Alistair Darling recently made a call for 25 year fixed rate mortgages to increase in opportunity-and even become normal-in the future. Currently, Nationwide is the only major mortgage lending company in the U.K. that offers a 25 year fixed rate mortgage.
Chancellor Darling’s reasoning behind his desire for wider availability of affordable long-term fixed rate mortgages is to bestow homeowners with added security in the current unstable financial conditions. Chancellor Darling explains, “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.
The popularity of the fixed rate mortgage is apparent. After Nationwide initiated the offer of their 25 year fixed rate mortgage in March 2007, they announced that it sold out within only five weeks.

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