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13 Mar 08 - Darling Calls For Home Loan Changes
Chancellor Alistair Darling has said there should be more
long-term fixed-rate mortgage products available as he opened
his first Budget in the House of Commons.
He made the claim as he revealed the Government's review
of public sector land has identified sites for 70,000 more
homes.
This is on top of the 40,000 already under construction,
and illustrates "why we are committed to three million
more homes by 2020", he said.
He added: "I also want more people to have the choice
of long-term fixed-rate mortgages. These protect borrowers
from risks and still allow them flexibility to move, or
get a new mortgage if rates go down.
"Today, however, most people in the UK have short-term
fixed-rate mortgages for two or three years, leaving them
exposed to interest rate rises when their mortgage deal
ends.
"This is not the case in other countries, such as
Denmark where the majority of homeowners take out long-term
fixed-rate mortgages.
"I want to see more flexible and affordable long-term
fixed-rate mortgages for 10, 20 or even 25 years.
"So, I will seek views on how we can deliver - drawing
on international experience - the right framework for the
UK to achieve affordable, long-term fixed-rate mortgages.
I will report back at the Pre-Budget Report."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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