Long term fixed rate mortgages cost homeowners

Cautious homeowners who opted to set their mortgage up on a long term fixed rate are losing significant amounts of money each year as interest rates continue at all time lows. Just three years ago a long term fixed rate was still a popular choice amongst home buyers. These mortgage products gave peace of mind as they payments were fixed for a prolonged period, typically five or 10 years, often even longer. Former Prime Minister Gordon Brown championed longer-term fixed rate mortgages when he was Chancellor, believing that they reduced volatility in the housing market and offered help to lenders for the ...