The party says it is “kite-flying” the idea of a simple five-year, fixed-rate deal with a interest rate ranging at around 4.5 per cent.
It says that with repayment-only, a deal like this could help borrowers pay off as much as 10 per cent of their homeloan. The LibDems also say that the loan could be covered by the Government with a mortgage indemnity guarantee.
LibDem Treasury policy adviser Chris Saunders says: “We think that there is a simple, safe product missing in the mortgage market. This safestart is just kite-flying right now and it is not a grand solution but it is us starting to look forward for borrowers.”
Unleashed Advice IFA Adrian Kidd says: “We have had a lag in fixed rates recently and many people are looking to lock into a longer-term fix. If a party can think of ways to restore con- fidence that is great, people just have no faith in financial services right now.”
London & Country broker David Hollingworth says: “Lots of people go for the no-frills deals and there is an appetite for five-year fixes, so this idea is a good place to start. It is essentially like any simple five-year fix on the market now but it is at 85 per cent LTV. This proves what brokers have been saying for a while – we need more deals with low rates and higher loan to value ratio.”