By using this website, you agree to our use of cookies to enhance your experience.


Labour proposes longer-term fixed rate mortgages

The Labour Party has proposed introducing 25-year fixed term mortgages should it win the next General Election.

Shadow chancellor Rachel Reeves suggested longer fixed-rate deals would help people buy homes with smaller deposits and with lower monthly repayments.

A Labour review of financial services is working with the mortgage industry to find ways to remove regulatory barriers to this, The Times reports.

Reeves told The Times: “In other parts of the world the housing market is less exposed to changes in interest rates than it is in Britain. More people are locked into longer mortgages.

"As a result, when you have volatility in mortgage rates, [which] we’ve seen on stilts in the UK, people are less affected in their pockets.

“If you are locked in for a 10, 25-year mortgage, those stress tests become redundant. Potentially you would be able to borrow a bit more, to put down a bit less of a deposit. If you can take out some of that stress and instability, that will make a difference.”


  • Hit Man

    Just shows how delusional Labour are.


Please login to comment

MovePal MovePal MovePal