Chancellor Alistair Darling's proposals to increase the supply of longer-term mortgages to homebuyers in the UK have been welcomed by several lenders.
Standard Life Bank is among those which have claimed a boost to the supply of long-term mortgages is preferable to shorter-term financial products.
The bank's own research has found that short-term mortgage rates only benefit some five per cent of homeowners, claiming that longer-term deals are "essential" for homebuyers looking beyond short-term deals.
Anne Gunther, chief executive of Standard Life Bank, explained: "Our research shows that while consumers are likely to choose upfront discounted rates, they are unwilling to remortgage enough times to make it financially worthwhile."
She said that people considering taking out a new mortgage should look at options other than the short-term rate and "check how the SVR stacks up too", as many people would find a competitive SVR the most beneficial over the long term.
She added that longer term fixed rates should also be considered, "given the certainty they bring".
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