Number Of Mortgage Sales With 35+ Year Terms Up 70%

New Freedom of Information (FOI) data from the FCA gathered by Quilter has revealed a sharp increase in the number of mortgage sales with a term of 35+ years at the beginning of 2021. In March of this year, 25,112 mortgages were sold with a term of 35+ years, a 70% increase compared with 14,765 in March 2019. In March 2018 14,683 were sold. For three years prior, at no point did sales surpass 20,000. The same FOI request revealed that March 2021 also saw the highest total number of mortgage sales for the past three years, likely due to the original stamp duty holiday deadline of 31st March. Read more on the Financial Reporter website.

https://www.financialreporter.co.uk/mortgages/number-of-mortgage-sales-with-35-year-terms-up-70.html

Government Reinforces Ownership As A Housing Priority

Government has reinforced ownership as a key element of its housing policy by opening Help to Buy to 35 year mortgages. MHCLG has confirmed the changes, which are taking effect immediately, offer the freedom to reduce monthly mortgage repayments by spreading borrowing over a longer period.

The move is said to close a loophole which has seen purchasers using the Help to Buy scheme facing difficulties and uncertainty if they wanted to take out a mortgage with a term of more than 25 years. Read more on 24housing.

https://www.24housing.co.uk/news/government-reinforces-ownership-as-a-housing-priority/

Popularity Of 35-Year Mortgages Is 'Storing Up Problems For The Future'

The rising popularity of 35-year mortgages could be storing up problems for the future, the Bank of England’s deputy governor has warned. As house prices have surged, a growing number of borrowers are being forced to spread home loans over a longer period than the traditional 25 years. Almost 16 per cent of all mortgages now last 35 years or more, against less than 3 per cent in 2005. The Bank is worried that many people taking out these loans will still be paying them off after retirement. Read more on the Daily Mail website.