Rising House Prices See Borrowers Paying Mortgages Off Beyond Retirement

A significant number of borrowers are attempting to stretch mortgage terms to 35 or even forty years, with ‘maximum age at end of term’ the most-searched term by brokers in August. This backs up research which showed a 70% rise in 35 year-plus mortgages over the past two years. This trend for elongated mortgages is potentially a result of rapidly increasing house prices. With higher prices creating affordability issues, some borrowers are looking to spread their mortgage out over a longer time period to lower the monthly repayments. ‘Income multiple used for affordability assessment’, was the second most-searched term in the residential market in August. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/finance/rising-house-prices-see-growing-number-of-borrowers-paying-mortgages-off-beyond-retirement.html