Forty-year mortgages becoming ‘new normal’

Homeowners paying off mortgages into their 70s is expected to become the "new normal" as more than half of loans can now be extended over 40 years. Data compiled by Moneyfacts shows 51% of mortgage deals available on the market are available over a maximum repayment period of 40 years, up from 36% in 2014. By contrast just 3% of deals require borrowers to repay within 25 years, down from 7.5% in 2014. Moneyfacts suggested that home loans are getting longer due to the sharp rise in house prices , and by choosing longer terms homeowners can afford to take out bigger loans, although they will be more expensive in the long run as more interest will be paid.

The Daily Telegraph (18/03/2019)