First direct unveils short- and long- term mortgage options. This product delivers long term peace of mind by providing protection against future interest rate increases. But here, fierce competition means shorter- term deals are more aggressively priced and more popular. The government wants homebuyers to opt for long- term fixed- rate mortgages, believing that this would bring a new stability to the housing market. Britain is almost alone in its attachment to short- term mortgage products such as two- year fixes or discounts.

If you compare our mortgages with those in the us, you are comparing apples and pears. With such restrictions in place, long- term mortgages such as these are clearly not suitable for everyone. Equity release or lifetime mortgages are popular but are not being used as a way to fund care.

Any changes are a long way off, and it is unlikely to have any effect in the short term. Long stretch: extending your mortgage term to secure a dream home could prove costly want to know more? Uk mortgage broker specialising in arranging mortgages over £100, 000. Deal finder: compare and apply for mortgages.

Per cent per annum on a long- term basis. This might include the concept of accelerated tax- free pension benefits being paid when the need for long- term care arises. To find out more about long term income protection insurance please click here to visit the association of british insurers website. Long term care provision for your elderly relatives, independent financial advice.

Chris pilling, first direct's chief executive, said: "these two new mortgages are unique in the market at the moment. This means you can really budget for the long term. Upon completion of the fixed- rate term, both mortgages revert to first direct's standard variable rate of 5. 7. Early repayment fees. As we saw from the explanation of long- term liabilities, they are liabilities that the firm has which are due in over a year. It is the lowest rate on offer over this term and compares favourably with the best two- year fixes at 4. 3%. James cotton of mortgage broker london & country mortgages in bath, somerset, says: 'there is an unusual situation at the moment. If you look at residential property, it is considered completely normal to borrow a very long- term mortgage in order to acquire somewhere to live.

Long- term mortgage deals are commonplace in europe and america. This is money's brilliant mortgages section is packed with advice and tips on getting the best home loan deal. The prospect of longer- term deals might be less likely to impress borrowers, as rates are predicted to be less competitive than today's shorter- term offers. The cost of taking out a long- term fixed- rate mortgage could fall if changes are announced in the pre- budget report this week.

A couple of pensionable age sought advice from a cab in kent a month before the end of their mortgage term. The chancellor believes that britain's housing market is too volatile and that the solution to the problem could be long- term fixed- rate mortgages. People appreciate the flexibility that shorter term mortgages afford them.