Nationwide Building Society is today responding to concerns raised by some financial organisations about the lack of flexibility on long term fixed rate mortgages.

This follows the Chancellor’s announcement in today’s budget which calls on lenders to offer more 25 year deals.

Nationwide’s 25 year fixed rate mortgage is celebrating its 1st anniversary this month. The deal, which offers customers a rate from 5.98% for 25 years, allows borrowers to get out of the mortgage after 10 years without incurring any early repayment charges. It is also fully portable which means that borrowers can take the deal with them when they move house and if, due to lifestyle changes partners no longer wish to share a mortgage, the loan can be changed into just one name.

Director of mortgages, Matthew Carter, said: “We know that a 25 year deal may not appeal to everyone but at the moment it is something our members want us to offer. Some customers want the security and peace of mind of a 25 year fixed rate mortgage, knowing that they will be unaffected by fluctuations in rates. And with just one reservation fee to pay, borrowers could save thousands of pounds on fees compared to taking several shorter term deals.”