14 Feb

Long-term deals 'can be popular'

Long-term deals 'can be popular'

Long-term fixed-rate mortgage deals may still be taken up by consumers if they are not restrictive, a spokeswoman at the Council of Mortgage Lenders has suggested.

Homeowners still have a substantial "appetite" for these deals but in many cases would only take them out if they were easier to exit, she claimed.

Furthermore, she added that if the government does not intervene in the matter, then a relatively low number of people will choose to take on such products.

The official noted that matters could be helped rates rise, because consumers will be able to budget with greater clarity.

"There's peace of mind if rates go up, it helps to manage budgets and plans and quells uncertainty if you’ve borrowed a lot of money," she commented.

Alistair Darling, the chancellor of the exchequer, recently stated that long-term fixed-rate deals should be more accessible.

"Fixing the level of mortgage repayments for several years makes real sense," he asserted.ADNFCR-1222-ID-18468033-ADNFCR

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