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The end of 30-year fixes

Manchester Building Society is withdrawing its 30-year fixed-rate loan, the last of its kind on the market.

Manchester’s decision means that UK borrowers will no longer be able to fix their mortgage rate for more than 15 years.

In July 2007, Prime Minister Gordon Brown had said that longer-term fixed-rate mortgages would help reduce the volatility in the housing market.

However, the market for this has disappeared despite the fact that many lenders had moved to offer these types of mortgages. analyst Darren Cook says: “Raising the capital when interest rates are so low is difficult. Investor expect a higher rate of return than those currently being offered for terms of ten years plus, as the only way for base rate to go from here is up.

“With so little funding available, lenders are concentrating on their core business of shorter term deals. Only nine lenders are offering ten year deals, with the majority of the market offering deal of no longer than five years. Long term deals may be unappealing to borrowers, particularly in an unsettled economic environment.”


Short on patients

I had to respond to to the letter in Money Marketing headed, Doctor’s orders, concerning GPs being paid by pharmaceutical companies and overprescribing.

Japanese prime minister dissolves lower house

Taro Aso, the Japanese prime minister, today dissolved the parliament’s lower house in a move that sets the country up for elections on August 30.Aso, who came to office in September 2008 following the resignation of Yasuo Fukuda, has seen his popularity nosedive along with his ruling Liberal Democratic Party (LDP). Public anger was openly […]

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


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