The Guardian - First-time buyers opt for 40-year mortgages to get on property ladder
Fast-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.
“A standard 25-year mortgage term would make it almost impossible for many first-time buyers to get on the property ladder,” Aaron Strutt, of brokers Trinity Financial, said.
Mortgage brokers say the big lenders have become very relaxed about offering 35- to 40-year mortgage deals. “It is surprising how many lenders are offering 40-year terms to make their mortgages more attractive to first-time buyers,” Strutt said.
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