Shapps calls for 30-year mortgages
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The housing minister, Grant Shapps, turned to Gordon Brown for inspiration yesterday. Talking to the Building Societies Association Mr Shapps called for lenders to offer 30-year fixed rate mortgages, an idea first floated by Mr Brown in 2003.
As happened then, lenders were dimissive of the idea. Mr Shapps claimed longer-term loans would ensure "people know where they stand". They would also bring new funding into the market by offering fixed returns for investors.
But Paul Broadhead, head of mortgage policy for the BSA, pointed out: "Longer-term fixed rate mortgages have been offered in the past but with limited consumer demand."
Meanwhile, the Council of Mortgage Lenders said that about 1.8 million people who have come off fixed rates are about £2,600 a year better off. The CML's director-general, Paul Smee, said: "The choice of whether or not to fix involves taking a view about the likely direction of future interest rates." CML research shows that borrowers are cautious about long fixed rates, worried that they may end up paying over the odds.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments