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BUDGET 2008: Reality check needed over long-term fixes

Abbey has warned that the chancellor Alistair Darling needs to be realistic about consumer appetite for 25-year long-term fixed rate deals.

Darling called on lenders in his Budget today to develop long term flexible mortgages. Four years ago Gordon Brown commissioned economist Professor David Miles to conduct a study into long-term fixed rates.

But the main problem any lender offering a long-term fixed rate has found is that consumers find them unattractive and take-up has always been low.

Nici Audhlam-Gardiner, director of mortgages at Abbey, says: “While it may be true that the market could benefit from a slightly longer-term outlook than its current two-year cycles, our customer insight tells us that 25 years is too long for most people to fix into a mortgage.

“We’re finding at Abbey that people’s horizons are lengthening – with five year fixes becoming increasingly popular – but 25 years is still very niche.

“So much can happen in a quarter of a century, both to a customer’s circumstances and to the economy. So while these very long term deals may be suitable to provide long-term stability for a small number of customers – they will not be suitable for all.”


Propertyfinder website hits rise has reported a 104% increase in home mover traffic. After a lull at the end of 2007, visits to the website soared in January, with rental properties particularly in demand.

BUDGET 2008: Darling ups ISA limits

Chancellor Darling has risen individual savings accounts limits to £7,200.He has also risen tax free limits on cash ISAs to £3,600 and is extending the savings gateway scheme across the nation.He says over 17m people are currently taking advantage of ISA.

Good news for Pink volumes

Pink Home Loans increased its business volumes by 20% in January compared with the same period last year. The value of its secured loan completions also rose by 40%.

NDL conference: 2007 saw unprecedented challenges

Network Data’s third annual conference kicked off today in Birmingham with Richard Griffiths, chief executive of Network Data Holdings admitting that the company had faced unprecedented challenges in 2007.Griffiths says: “Last year at the conference I opened my speech by saying that 2006 had been a very successful year for us. “But 2007 has seen […]


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