Homeowners looking forward to new long-term mortgage deals

12/07/2007

Alistair Darling from the Standard Life Bank feels that Labour are looking into boosting the supply of long-term mortgages to get homebuyers a better mortgage deal.

The data gathered showed that many consumers taking out short-term discounted mortgages do not save money simply because they do not understand how important it is to remortgage. Through a standard report it showed that homeowners should remortgage at least six times to save money.

Chief Executive of Standard Life Bank stated that first-time buyers need to stop looking for short-term rates, as this can be costly on the long term.

“When people are considering taking out a new mortgage they should look beyond the short-term rate and check how the SVR stacks up too. The report is clear in its conclusions that for most people a competitive SVR will be the most beneficial over the long term. Longer term fixed rates should also be considered, given the certainty they bring.

“For those who want to take advantage of short-term deals we should help ensure they understand how often they will need to remortgage, but for those who are unlikely to remortgage five or six times we need to provide mortgages with real long-term value.”

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