11-07-2007

Darling to shake up mortgages

Chancellor of the exchequer Alistair Darling has announced that the government hopes to make changes to how lenders provide and finance fixed-rate mortgages in the UK.

By making it easier for lenders to provide longer-term mortgage products - through assisting mortgage providers to finance the process - and ensuring consumers can make "the most informed choices when buying a mortgage", the government hopes to "improve the way the mortgage market works".

Commenting on the changes Chris Crook, subsidiary managing director of Countryside Properties, said that the "three pronged attack" shows the government "is at least aware that there is a problem".

However, he questioned how successful the government would be in solving the general housing shortages, as well as difficulties first-time buyers have in getting onto the property market.

Mr Crook also raised the subject of fixed-rate mortgages, stating that "it will be interesting" to witness how the government intends to support long-term versions of the product.

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