Will you want the new mortgage?

Standard Life is introducing a US-style mortgage in the UK later this month - capped at 6.25% for the whole 25-year term. BBC personal finance reporter Andrew Verity looks at the pros and cons of the deal.

PROS

Unprecedented long-term security - rate will never rise above 6.25% for whole 25-year term of the mortgage

No risk of missing out if rates fall - guarantee that rates will offer value at least as good as the average of the big three: Halifax, Abbey National and Cheltenham & Gloucester

Customers can borrow up to 90% of the purchase price of their home

No penalties for switching mortgages or redeeming the loan after five years

CONS

Customers will be penalised if loan is redeemed within five years (sliding scale of 10 months' interest in the first year, falling to five months' interest in the fifth year)

The best fixed rate deals cost slightly less at first (Yorkshire Building Society will fix rates at 5.59% for two years) - but they only last for a fraction of the loan term

Not available to customers over the age of 42. Standard Life says the loan is unsuitable for them because they will have passed retirement age by the end of the mortgage term.

Lack of flexibility to choose to make overpayments or later to make withdrawals from capital repaid.