Darling in long-term mortgages push

Chancellor of the exchequer Alistair Darling has announced he is setting up a working party to seek ways in which lenders can make long-term fixed-rate mortgages more attractive to borrowers.

In his budget speech yesterday Mr Darling stated he is keen to see more fixed-rate loans of many years duration being taken out on the grounds that this would provide greater assurance for homebuyers, particularly those with low incomes.

However, the plans have been questioned in some quarters, with the Association of Mortgage Intermediaries (AMI) suggesting that such products did not fit well with the economy and lifestyles of a flexible workforce, which would mean that demand for such products is unlikely to grow.

AMI director Richard Farr said: "Our research has left us in no doubt that borrowers are yet to be convinced that long-term fixed-rates are a good deal for them."

Those looking to avoid any mortgage uncertainty can do so by opting for the self build method of getting on the housing ladder.


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