Long-term fixed-mortgages "cost prohibitive"

The costs associated with exiting a long-term fixed-rate mortgage arrangements render them less popular than they might be among consumers around the UK, it has been claimed.

According to the Council of Mortgage Lenders (CML), if long-term fixed-rate deals are to become genuinely attractive to British homeowners then the government will be required to make policy decision that make them less "cost-prohibitive".

However, the council has also suggested that there are advantages to agreeing a loan arrangement that lasts for 25 years particularly for people who are concerned at the prospect of borrowing a large sum of money.

In addition, long-term mortgage deals give consumers the flexibility to plan their finances for decades rather than just years or months at a time.

Earlier this week, the CML expressed its optimism that the cut in the base rat eof interest will ease the affordability constraints affecting first-time property buyers around the country.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.



Found this page interesting?

Help spread the word and share this page with your friends and family on your social networks.