Charcol has predicted lenders will start offering longer-term mortgages to combat affordability prob...
Charcol has predicted lenders will start offering longer-term mortgages to combat affordability problems for first-time buyers.
The broker said customers could see terms extended to 50 years by some lenders. However, lenders do not seem so keen, saying longer terms could make affordability problems worse for future borrowers.
Bernard Clarke, the Council of Mortgage Lenders’ spokesperson, said lenders should consider the consequences of longer terms before making any moves.
He said that because first- time buyers are getting older and carrying more debt, longer terms could result in borrowers overstretching their finances. Will longer terms help solve affordability problems ‘ or create even more?
