First ever 25-yr fixed-rate mortgage
March 27, 2007 by admin
Filed under News, News-Mortgages
A new mortgage has been launched that could help first-time buyers get onto the property ladder.
Nationwide Building Society is offering a 25-year fixed-rate mortgage which will see buyers protected from future interest rate rises.
The firm has announced that the mortgage comes with a 5.49 per cent fixed interest rate and borrowers can opt out of the mortgage after ten years without having to pay a penalty fee.
Nationwide is promoting the new deal to everyone but first-time buyers are likely to see the biggest benefits.
“At Nationwide we are totally committed to our members because we have no shareholders to please,” commented Stuart Bernau, executive director at Nationwide.
“Our new 25-year fixed-rate mortgage is a clear demonstration of this. It not only offers long-term good value to borrowers looking for the security of fixed payments but also the flexibility of a ten-year deal.
“This is the latest in a series of initiatives that have been designed to complement our existing mortgage product range,” he added.
The new mortgage has been welcomed by many people although some argue that better deals are still available, with many shorter-term loans offering better rates.
If you are considering getting a mortgage make sure you seriously consider which deal is best for you.
