This group are often borrowing a larger multiple of their income and must pass a stress test to demonstrate that they can not only afford the initial repayments but would also be able to cope if interest rates were to increase in the future.
This becomes much less of a problem on a long-term fix.
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I believe that it’s time that these types of fixes were more readily available in the UK and that the current model needs to change to open up more options for borrowers and to help break down the barriers so many people face when it comes to home ownership.
Chris McVay is senior mortgage and protection manager at Bradley Hall
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