Homeowners turn to ultra-long loans

Almost two in five new mortgages are being taken out for 30 years or more as homeowners turn to ultra-long deals to keep down monthly repayments. Traditionally borrowers have signed up for 25-year loans, but the number of households seeking out longer terms has more than doubled since 2007. More than 22,000 home loans agreed in July – 39% of the total – were for 30 years or more, according to trade body UK Finance. Some of these were for 35 and even 40 years. In July 2007 the total was 10,000. Brokers say more homeowners are extending the length of their deals when remortgaging to ease the pain of soaring rates, but warn that they will pay much more interest in the long term. 

Daily Mail (29/10/2022)