Sir Beer...25 Year Fixed Rate Mortgages.....what Do We Think?

[ToraToraTora]

https://news.sky.com/story/labour-wants-25-year-fixed-rate-mortgages-to-become-common-in-the-uk-is-that-realistic-13053914

I applaud the idea of certainty over the period of a mortgage but innevitably lenders will charge higher rates than they otherwise would or could because of the unknowable future financial climate. Also most mortgages do get redeemed as people trade up or down the property ladder.

[douglas9401]

We had a ten and five year fixed-rate deal which was the perfect solution for buying our house.

25 years would give peace of mind and stability for families like us who have no interest in living like gypsies, constantly moving from place to place.

[youngmafbog]

//no interest in living like gypsies, constantly moving from place to place.//

Fine if you have a job that allows you to do that.  The alternative was like I did either a rented flat or hotel rooms (only choice abroad) on top of the Mortgagae.

[youngmafbog]

To answer your question TTT I share some of your concerns. However fixed rate loans are usually bought on the money markets so yes the rate may be higher but they usually even out.  The problem comes when some take out a mortgage and the rate falls, then the moans come in due to not understanding how the markets work. 

As for the reedeeming, there is no reason they shouldnt be trnasferred with a 'top up' for the rest.

[ToraToraTora]

yeah fair points YMB.