The Telegraph - Desperation to get on the property ladder pushes buyers to 30-year loans
First-time buyers are paying tens of thousands in extra interest by taking on longer home loans in a desperate bid to meet banks' requirements for new mortgages.
Aaron Strutt of Trinity Financial told The Telegraph it is the buyers who are most financially stretched - namely first-time buyers - who are taking out the longest mortgage terms.
Mr Strutt said: “Buyers need larger mortgages because houses are more expensive. Then there is everything like credit cards, loans, childcare costs – the costs are all going up and it all goes into a lender’s calculations.
“That means buyers need longer mortgage terms to be able to meet affordability criteria. Buyers don’t want it, but they need it to be able to get a mortgage.”
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