Nationwide mortgage sparks debate

A debate has started after the Nationwide launched its 25-year fixed-rate mortgage.

A representative of moneyfacts.co.uk, Julia Harris, welcomed this mortgage product, as it only levies a redemption charge for the first 10 years of its life. This gives the borrower the option of switching mortgage lender after this.

However, a more skeptical view was expressed from moneysupermarket.com's Louise Cuming about the benefits of fixing your mortgage rate for such a long period of time. It might lead to security however might lead to you choosing the wrong product for your long term needs.

A more balanced view came from Ray Boulger from advisory firm John Charcol - there are certainly benefits and negatives of such a mortgage and he would recommend you seek advice and analyse your personal needs as whilst it will suit some it will also certainly not suit others.

Ray Boulger advised borrowers to opt for tracker mortgages at present, following the Bank of England's decision in March 2007 to keep the base rate at 5.25% for the second month in a row.