The Labour Party has published its much-anticipated financial services review and the LTFRM Alliance was delighted to see that, following Shadow Chancellor Rachel Reeves’ comments in her interview to The Times newspaper earlier this month, LTFRMs play a prominent role.
In the Financial Services Review, the Labour Party pledges to “Partner with the sector to encourage increased offering of longer-term fixed rate mortgages, which would allow people more choice over the level of interest rate risk they are willing to take on.
The review also notes that “longer-term fixed rate mortgages could also help more first-time buyers access mortgages.”
It adds that “a Labour government will work with industry to evaluate the barriers to increasing the diversity of mortgage offerings and will support people in understanding the benefits of different mortgage products.
“This will include reviewing mortgage markets in countries with a higher proportion of long-term fixed rate options, including Germany, Denmark, and the Netherlands.”
The LTFRM Alliance is delighted that the Labour Party recognises the benefits that LTFRMs could bring to the UK mortgage market and for UK borrowers. We are also delighted that it is committed to looking at how to expand the provision of LTFRMs in the UK.
We stand ready to provide any input and support that the Labour Treasury team needs to ensure it has a full understanding of the benefits that LTFRMs offer and the quickest and simplest means that these products can be introduced here in the UK.