Shadow chancellor Rachel Reeves suggested longer fixed-rate deals would help people buy homes with smaller deposits and with lower monthly repayments.
A Labour review of financial services is working with the mortgage industry to find ways to remove regulatory barriers to this, The Times reports.
“As a result, when you have volatility in mortgage rates, [which] we’ve seen on stilts in the UK, people are less affected in their pockets.
“If you are locked in for a 10, 25-year mortgage, those stress tests become redundant. Potentially you would be able to borrow a bit more, to put down a bit less of a deposit. If you can take out some of that stress and instability, that will make a difference.”
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