Labour pledges to boost mortgage choice for first-time buyers

The Labour Party has committed to working on ways to offer longer-term fixed rate mortgages to support first-time buyers.

Outlining its plan for financial services, a report from Labour said it would partner with the property sector to encourage increased offering of longer-term fixed rate mortgages, which would allow people more choice over the level of interest rate risk they are willing to take on. 

It said: “Longer-term fixed rate mortgages could also help more first-time buyers access mortgages.

“A Labour government will work with industry to evaluate the barriers to increasing the diversity of mortgage offerings and will support people in understanding the benefits of different mortgage products. 
 

“This will include reviewing mortgage markets in countries with a higher proportion of long-term fixed rate options, including Germany, Denmark, and the Netherlands.”

Outlining its environmental credentials, the report said Labour would also support expanding the offering of green mortgages, “which may be less expensive than other mortgages.”

It said: “This could include providing access to green mortgages to homeowners who complete retrofitting work, as well as including financing for retrofitting works within green mortgage offers for new homeowners.”