Nationwide's new 25-year fixed-rate mortgage could attract first-time buyers looking for long-term predictability in their housing repayments, financial commentators suggest.
The product, which charges rates from 5.49 per cent and a £599 arrangement fee, could be most attractive to "borrowers who still have the majority of their mortgage term remaining", commented Moneyfacts.co.uk analyst Julia Harris – an apt description of first-time buyers.
Three successive interest rate rises have left many first-timers seeking certainty and "peace of mind" about their future mortgage repayments, Ms Harris observed.
And the Nationwide 25-year fixed offers rates which are competitive in the context of long-term fixed-rate deals, she added.
Moreover, the mortgage is also available for ten years with no redemption fee payable if the customer pays off the mortgage or transfers to another product.
Finally, if customers face unexpected challenges within their 25-year term such as job loss, incapacity or divorce, payment holidays are an option.
According to research this week from Fool.co.uk, nine in ten first-time homebuyers are now opting for the greater stability offered by fixed rate mortgages.To read more about mortgages, click here
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