Britons 'to have more fixed-rate mortgages available' Lenders will be able to finance more affordable long-term fixed-rate mortgages under a new scheme proposed by the government. Chancellor of the exchequer Alistair Darling announced that he would consult on creating a new regime for covered bonds, aimed at helping mortgage lenders finance more affordable 20 to 25-year fixed-rate mortgages. Any potential barriers which could prevent lenders from offering these long-term mortgages will be addressed by Mr Darling before the Budget, according to HM Treasury.

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Other initiatives proposed include a Treasury-led review to investigate any other barriers to lenders wanting to raise funds in wholesale markets and a private members bill to increase the proportion of funds which may be raised in wholesale markets.

The government will soon be publishing its housing green paper, which will provide further details on these proposals.

Mr Darling's announcement was welcomed by Yorkshire Building Society, which said that it has a long-term fixed-rate mortgage product which borrowers will appreciate.

"One or two lenders have tried to offer 'escape' windows at five and ten years from a 25-year product, but the take-up has been sporadic,” Ian Corning, chief executive of the building society told the Fair Investment Company.

He added that he should "be in a position to make an announcement in the next few weeks" about any new long-term fixed-rate mortgages.