BUDGET 2008: Mortgage Advice Bureau brands Darling naive

The Mortgage Advice Bureau has branded the chancellor naive, for believing long-term fixed rates can reduce risks for first-time buyers.

Brian Murphy, head of lending at Mortgage Advice Bureau, says: “These products fail to match 21st century lifestyles. High divorce levels and ease of travel mean people are unsure of where they will be in three to five years time, yet alone 20 to 25.

“While a long-term fixed rate might offer security, the unpredictable nature of our lives today should not be overlooked by borrowers when assessing the attractiveness of these mortgages.”