Nationwide 25-year mortgage birthday
Wednesday, 12 Mar 2008 11:23
Nationwide Building Society launched the first 25-year fixed-rate mortgage this time last year.
The original issue of the deal sold out in five weeks and was relaunched as a permanent offer in July.
The push for longer fixed-rate mortgages has been led by chancellor Alistair Darling – who sees them as a way to provide greater stability to the housing and mortgage market.
Take-up of the 25-year deal has in particular come from first-time buyers, looking to avoid charges and fees from repeated remortgaging.
After ten years, borrowers can get out of the deal without early repayment charges
Matthew Carter, director for mortgages at Nationwide, said: "Our experience is the 25-year fixed-rate mortgage has a place in the market and offers long-term stability for borrowers who want to protect against fluctuations in interest rates.
"We also recognise people who want a mortgage for life don't necessarily want a house for life which is why the mortgage is fully portable, allowing borrowers to take it with them as they move up the property ladder."