A leading international trade expert has called for a “much more competitive” economy and queried the lack of 30-year fixed mortgage rates in the UK.
Shanker Singham, former adviser to UK Secretary of State for International Trade, said if a regulator is thinking about economic growth, along with other things, it should think about the effect on competition.
Speaking to GB News, the Growth Commission expert called for a “much, much more competitive economy”.
He added: “There’s a lot of discussion about 99 per cent mortgages, well, the question we have to ask ourselves, is why is it that in most other countries in the world, the idea of a fixed rate mortgage for 30 years is normal.
Growth Commission expert Shanker Singham addressed mortgage rates in an interview on GB News today
PA | GETTY
“Why do we not have that here?”
While there are some UK lenders offering longer-term fixes, UK borrowers getting a fixed mortgage rate typically opt for shorter-term products, such as two, five or 10-year deals.
Start-up bank Perenna announced in September last year it was launching home loans which would allow people to fix their mortgage rate for up to 30 years.
The lender claimed by giving people certainty over what they pay for up to three decades, its deals would free borrowers from the interest rate turmoil seen recently.
Other UK lenders offer longer-term fixes, for example, Kensington Mortgages offers a product with a maximum term of 40 years.
More to follow…
