The Government says early repayment charges (ERC) on long-term fixed rate mortgage could be removed if interest rate risk is more easily passed through to investors.
A consultation on improving the affordability of housing in the UK suggests long-term fixed rate mortgages, which are common in Europe, are the key to increasing home ownership. The report, part of the Housing Finance Review, is designed to identify the barriers to lenders to offer affordable and flexible long-term mortgage deals. Alistair Darling, the Chancellor, believes long-term deals can have wide ranging benefits, and says: “[We] want to see greater availability of affordable long-term fixed-rate mortgages. For many households, particularly those on low incomes, fixing the level of ...
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