More opt for longer loan deals and lower monthly payments as rents soar in cost of living crisis
A standard mortgage used to run for 25 years but experts are reporting a growing trend for marathon loans spread over up to 40 years as first-time buyers and movers opt for lower monthly payments in an effort to bridge the gap between rising living costs and still-high asking prices.
New figures show the number of first-time buyers opting for a mortgage term longer than 35 years more than doubled during 2022 to 17%. The number taking out a loan over 30 to 35 years also increased – from 34% to 38% – during the same period, according to the banking group UK Finance.
