Darling moves to stabilise market

Published: March 10, 2008

The chancellor of the exchequer is expected to announce new rules with the aim of stabilising the UK property market.

It is thought that Alistair Darling will announce the changes when he delivers his first Budget to the House of Commons on March 12th.

The changes will lead to more 25-year fixed-rate mortgages being provided for borrowers.

It is hoped that this will lead to greater stability in the housing market and the deals are sure to be popular among buyers, particularly after the global credit crunch.

The rule changes will centre on making it easier for lenders to secure funding through covered bonds.

In addition, lenders will also be able to provide cheaper mortgage rates for borrowers considered to be reliable, while more risky customers will pay slightly more.

Mr Darling hopes that the changes will bring greater stability to the market and will signal the end of boom and bust.