BRITAIN: ‘ Record Number of People Take-Out Mortgages Placing Themselves in Debt for Life ‘

#AceFinanceNews – BRITAIN – August 24 – A record number of people are taking out 30-year mortgages as the result of spiralling house prices Telegraph Finance reported.

​One in five of the 171,000 new loans taken out between April and June were for terms of more than 30 years, compared with 18pc of 148,000 loans in the first quarter, according to the Council of Mortgage Lenders.

One in five of the 171,000 new loans taken out between April and June were for terms of more than 30 years, compared with 18pc of 148,000 loans in the first quarter, according to the Council of Mortgage Lenders.

The CML said the number of first-time buyers taking out a mortgage with a longer repayment period jumped to 28pc of all new loans, from 26pc in the first quarter.

Ten years ago, just 4.5pc of all borrowers took out loans of more than 30 years, rising to 11pc at the end of 2007, before Northern Rock collapsed.

The CML said borrowers were finding it harder to meet monthly mortgage payments as a result of rising house prices and the prospect of higher interest rates, while tough new affordability rules were also pushing borrowers towards longer loans than the traditional 25-year term.

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