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Lenders 'finding it difficult to offer long-term fixed-rate mortgages'

By Jonathan Dawes, Mon 24 Oct 2011 - Published in Mortgages

Lenders could find it impossible to offer 30-year fixed-rate mortgage deals with attractive terms in the current marketplace.

This is according to John Charcol, which claims that if pricing and terms can be agreed with the customer then there could be demand for these products, but the challenge in the current market is getting it right.

Ray Boulger, a senior technical manager at the firm, said: "With the wholesale markets being as difficult as they are, to secure long-term funding would probably be a bit problematic for certain lenders.

"The reality is that the demand for this sort of deal is only there if the price and the terms are correct."

Recently, housing minister Grant Shapps spoke at the Building Societies Association's annual mortgage seminar, where he called on lenders to offer longer fixed-term mortgages to UK consumers in an attempt to encourage greater stability in the housing sector.