Why do policymakers keep returning to long-term fixed rate mortgages?

Successive policymakers, of whom the Housing Minister is the latest, have called for greater use of long-term fixed rate mortgages in the UK. The argument goes that long-term fixed rate mortgages reduce volatility in the housing market and open up new sources of funding. To our minds, the case has yet to be conclusively made.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.