I read an interesting story on the MoneySavingExpert website about Housing Minister Grant Shapps call for lenders to offer 30 year fixed rate mortgages for which he received a barrage of abuse.
Typically in the UK, a mortgage lender will entice borrowers with a 2 or 5 year fixed rate mortgage but on occasion, they may be able to get it for as long as 10 years before reverting back to the variable rate mortgage. It’s what we’re used to in the UK and for a lot of people, it’s been something that they were more than happy with. However according to the article, “in the US full term fixed rate loans are very common, but in the UK they are almost non-existent.”
The article goes on to discuss the merits of either a fixed rate mortgage or a variable rate mortgage based on the historical data of the noughties. Giving advice on the types of mortgages available today and which type borrowers should go for.
You can read the article here: Is the Government’s 30-year fixed mortgage call baloney?