Property News · October 9, 2015

First-time buyers opt for 40-year mortgages to get on property ladder


Proportion of borrowers taking out loans for more than 25 years has doubled in five years, raising concerns over return to risky lending practicesFast-rising house prices are forcing home buyers to stretch their mortgage terms up to 40 years to get a foothold on the property ladder, raising fears of a return to the risky lending practices common before the financial crisis.One in five borrowers are looking to spread their repayments over 30 years or more, compared with one in 12 a year ago, according to the Mortgage Advice Bureau. Most demand comes from first-time buyers, who are opting for longer-term repayments to cut costs, but face paying much larger interest over the longer term. Continue reading…

Source : theguardian.com
Read more…First-time buyers opt for 40-year mortgages to get on property ladder

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