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Preach to lenders about long-term deals, not brokers

I was intrigued to read the news item in last week’s issue of Mortgage Strategy in which brokers are urged to place borrowers on long-term fixed rate products.

If fixed rate deals were even close to the SVRs currently being offered by lenders brokers would indeed be advising their clients to take them.

But when Cheltenham & Gloucester has a variable rate of 2.5% and a 10-year fixed deal for 5.29% at 60% LTV, convincing clients is not so simple.

Pundits urging us to put clients on fixed rates are purveying the right message but to the wrong audience – they should try to get lenders on board too.

Paul Cuffling

Director

DJ Cooke (Life & Pensions)

By email

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