Mortgage changes to be announced

Posted: 10 Mar 2008 11:15:58 GMT

There are plans to introduce more long-term fixed-rate mortgages to the UK market.

There are plans to introduce more long-term fixed-rate mortgages to the UK market.

Alistair Darling is set to announce new rules which will allow lenders to offer mortgages with rates fixed for 25 years.

It is hoped that this will help to bring some stability to the housing market and signal the end of the boom and bust culture.

These types of deals are readily available in Europe but there are very few on the market in the UK.

Even those which are offered in this country tend to come with higher rates than those offered on short-term mortgages.

Mortgage lenders will be given greater freedom to raise money through covered bonds and this will help them to offer more competitive long-term deals.

Mr Darling is due to announce the new rules when he delivers his first Budget to the House of Commons on March 12th.

In addition, the chancellor is expected to announce a new kite marking system for mortgages in a bid to boost investment in the wholesale markets.

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