Habito has launched the longest-ever fixed rate mortgage, allowing borrowers to access fixed-rate periods of up to 40 years.
In response to the launch Colin Bell, co-founder and chief operating officer at Perenna, said: "At Perenna, we believe that long-term fixed rate mortgages are the future of Britain’s housing market.
"These products will ultimately give more people the opportunity to step onto and up the property ladder.
"The traditional 2- or 5-year approach to lending is not working for many borrowers.
"Long-term fixed rate products, without the risk of reverting to SVR, offer a viable alternative.
"Habito’s long-term proposition is a step in the right direction for the market.
"Perenna will be launching its own range of fully scalable, flexible fixed for life mortgages at competitive rates later this year - providing borrowers with both certainty and flexibility.
"Our aim is to develop a mortgage market that works for borrowers and allows them to access the funding they need for the homes they really want.”
Kevin Roberts, director at Legal & General Mortgage Club, added: “We should always welcome genuine innovation in the mortgage market and we welcome this initiative from Habito offering a fixed rate mortgage for as long as 40 years.
"Not only does the launch boost product choice for consumers, but long-term mortgages also have the potential to be a viable route for many buyers to help them achieve their housing ambitions.
“That said, borrowers have so far taken little interest in existing long-term fixed rate mortgages and it remains to be seen just how popular Habito’s new product will really be.
"Further information on Habito’s loan-to-income limits for these mortgages for example will also help to determine exactly which borrowers could benefit from these solutions.
"For many borrowers, a 2- or 5-year fixed rate mortgage may still prove to be more financially appealing in the short term and we would encourage those looking to buy or refinance to speak to an independent mortgage adviser and benefit from professional support.”