Will Britain’s first 40-year fixed-rate mortgage tempt buyers?

Online broker Habito has launched Britain’s first 40-year fixed-rate mortgage. Nicole Garcia Merida runs an eye over what’s on offer.

Person looking in an estate agent's window
Fixing your mortgage for 40 years is a bit of a gamble
(Image credit: © Nathan Stirk/Getty Images)

Why on earth would anyone want a 40-year fixed-rate mortgage? asks Sarah Davidson on inews. The truth is, however, that “it’s not as mad as you think”.

Lender and online mortgage broker Habito launched Britain’s first 40-year fixed-rate mortgage this week with Habito One, which will offer fixed rate periods of between ten and 40 years. Until now, the standard repayment term for a mortgage has been 25 years at a variable rate of interest, with rates fixed, perhaps, for the first two or three years.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.