{"id":1476,"date":"2022-11-17T15:08:14","date_gmt":"2022-11-17T15:08:14","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=1476"},"modified":"2022-11-17T15:08:15","modified_gmt":"2022-11-17T15:08:15","slug":"50-year-mortgages-for-a-foot-on-the-ladder","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2022\/11\/17\/50-year-mortgages-for-a-foot-on-the-ladder\/","title":{"rendered":"50-year mortgages for a foot on the ladder"},"content":{"rendered":"<div class=\"hd-block hd-block-paragraph\">\n<p><strong>The government is contemplating ultra-long mortgages as a way to boost homeownership, with 50-year terms currently under consideration.&nbsp;&nbsp;&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Borrow more&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Longer mortgage periods would allow potential homeowners to borrow larger sums, which means they would be able to afford higher-priced homes. With the average house price having climbed by 15.5% in the year to July<sup>1<\/sup>, greater affordability would provide a huge boost to millions of people struggling to get a foot on the housing ladder.&nbsp;<strong>&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Repay more&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>There is a price to pay, however. Calculations show just how expensive these deals could end up. One estimate<sup>2<\/sup> for buying an average house on an average long-term fixed rate deal (6.19%) puts monthly repayments at \u00a31,140. Over a 50-year term, this would mean \u00a3472,984 paid in interest alone!&nbsp;&nbsp;&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Longer terms&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>There is already a clear trend in favour of longer mortgage terms. Indeed, the average loan term taken out by a first-time buyer hit 30 years in June<sup>3<\/sup>, a record high. This is nearly five years longer than the average loan term two decades ago.<strong>&nbsp;&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>1<\/sup>ONS, 2022&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>2<\/sup>Barrows and Forrester, 2022&nbsp;&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><sup>3<\/sup>UK Finance, 2022&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The government is contemplating ultra-long mortgages as a way to boost homeownership, with 50-year terms currently under consideration.&nbsp;&nbsp;&nbsp;&nbsp; Borrow more&nbsp;&nbsp; Longer mortgage periods would allow potential homeowners to borrow larger sums, which means they would be able to afford higher-priced homes. With the average house price having climbed by 15.5% in the year to July1, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":1471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,76],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/1476"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=1476"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/1476\/revisions"}],"predecessor-version":[{"id":1477,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/1476\/revisions\/1477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/1471"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=1476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=1476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=1476"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=1476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}