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Last Updated: Thursday, 26 July 2007, 10:21 GMT 11:21 UK
Have Your Say: Long-term mortgages
A new detached house

The government wants to help mortgage lenders finance more 20 to 25-year fixed-rate mortgages.

Long-term fixes protect home owners from fluctuating interest rates and the government says they would bring greater stability to the housing market.

But mortgage experts warn they can be expensive and may not suit many borrowers.

We asked for your comments, a selection of which are below. This debate is now closed.


My husband and I had a 25-year fixed-rate mortgage with Pearl in 1959 for 75% of the house price. I already had 25% endowment insurance with them and we borrowed against that. We ended up paying less per quarter than people buying similar houses were paying per month. It was a very good deal. There was an entirely different mentality at that time. I think lenders are totally irresponsible, people who have problems paying are offered larger sums that they can borrow. That is crazy and causes heartbreak to the poorer members of society.
Enid, Fleet

It is about time the 25 year term was the main borrowing period. The two year products over a 10 year window can cost the consumer a lot especially when you consider the charges on either side of the borrowing period and the broker's commission.
James Beirne, Birmingham

The profits of brokers and mortgage providers are heavily dependent on fees for processing new mortgages and remortgages. Providing a long-term mortgage which is portable from one house to another and repayable early would totally undermine the profitability of the current market whilst providing huge cost savings to consumers. Imagine the level of job losses that would occur in banks, building societies, and brokers. I wonder which entrepreneur will break the mould, become the consumers' champion and take on the status quo?
David Wilson, Haslemere

I have a five year fixed mortgage with Nationwide. The arrangement fee was only 199 (as opposed to 399 for a two year fix) and I can overpay each month by 500 - reducing the term or monthly payment. I think five years is long enough as conditions change and so do personal circumstances. Why would anyone fix for 25 years when rates are increasing at the moment, but could fall again?
Peter Beckett, Clacton-on-Sea


The comments we publish are not necessarily the views of the BBC but will reflect the balance of views we have received. It is helpful if contributors state if they work for any organisation relevant to an issue discussed. Readers should form their own views on whether messages published represent undeclared interests, or views prompted by a common source.



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SEE ALSO
Lender answers 25-year loan call
12 Jul 07 |  Business
Housing dominates Brown's agenda
11 Jul 07 |  UK Politics
Push for more long-term mortgages
10 Jul 07 |  Business
External links and helplines
12 Jul 07 |  Moneybox


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