14 Mar

Long-term mortgages 'help buyers avoid risk'

Long-term mortgages 'help buyers avoid risk'

Risk-adverse homebuyers may be interested in choosing the type of long-term mortgage promoted in this week's Budget, an expert has claimed.

Steve Cox, operations director of Spicerhaart Financial Services, said that the government's proposal for encouraging longer-term mortgages could be beneficial for homebuyers.

Fixed-rate mortgages for five, ten and 25 years could help cut the level of risk for first-time buyers and reduce their exposure to potential interest rate hikes, he explained.

"We welcome any move allowing borrowers to budget with affordable and suitable products," Mr Cox said, explaining that the scheme could help people organise their money "over the longer term" and make them less likely to default.

At the same time, he also suggested that the Budget could have done more to help homebuyers.

He added that it is still "difficult to judge" how many people will choose long-term mortgages and how it will impact upon the property market.
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