Providers cautious of Brown mortgage plans - papers 12 July

Brown and Alistair Darling, the Chancellor, yesterday unveiled proposals to boost the popularity of long-term, fixed-rate mortgages, which are rare in Britain but commonplace in the US and parts of Europe. The aim is to make the housing market less vulnerable to interest rate swings and to make housing more affordable. The Chancellor, who highlighted the approaching problem of "rate shock" for millions of borrowers whose cheap, fixed-rate deals were entered into two years ago and are due to expire shortly, will report by the Budget, next spring, on the proposals. HIGHER INTEREST RATES...