Hi Hamsi – great question!
Given the cost of living pressures at the moment, rate rises will put an unwelcome strain on household finances. I think that the security provided by a fixed rate could be very important.
I also think it is interesting that in July, Boris Johnson was supposedly considering allowing house buyers to take out 50-year mortgages that they would be able to pass on to their children. These “cross-generational” mortgages could be useful to allow additional borrowing over a longer period. These proposals don’t seem to have been picked up by Lizz Truss or Rishi Sunak, but it will be interesting to see if this reignites the idea given buyers will increasingly struggle to get onto the housing ladder in more expensive areas of the country.
I’d be very interested to hear other thoughts on whether this is a good idea!
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