Politics is key to 25-year fixed rate mortgages

EMFA, to use its acronym, is backed by bancassurers such as Northern Rock to pitch the idea of government-backed securities as the best answer to broadening residential property ownership across the region. The idea is to replicate the actions of the US’ Fannie Mae and Freddie Mac, government-backed – but not guaranteed – companies which have been extremely successful in bringing about wider access to home ownership. Speaking at a meeting of regulators, associations and investment bankers organised by Deloitte Consulting, EMFA’s Rob Thomas argues the objectives of harmonising financi...