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Big change for mortgages after homeowners offer 50-year deals that can be passed on to kids

PEOPLE are being offered extra-long 50-year mortgages that can be passed on to their children.

Lenders are encouraged to extend credit to buyers to allow more rental properties to exit.

People are being offered extra-long 50-year mortgages that can be passed on to their children

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People are being offered extra-long 50-year mortgages that can be passed on to their childrenCredit: PA

Japan has previously offered 100-year loans to help families pay off debt together.

According to the suggestions of #10, people are not expected to pay off their mortgages in full during their lifetime.

Instead, they can hand over their property, including the outstanding debts, to their children.

Boris Johnson last night promised to “find all kinds of creative ways to empower people”.

When asked if he was considering intergenerational mortgages that could be passed between parents and children, the Prime Minister replied: “Yes, certainly.”

Of people paying a lot of rent, he added, “We should find ways to help you turn that into a mortgage.”

Other ideas for solving the housing crisis include releasing more state-owned land and cheaper housing for public sector workers.

The Prime Minister added: “I think there are a lot more ways to help people with 95 per cent mortgages.

“There’s a whole range of products now that we’ve been trying to promote. But we also want to find all sorts of creative ways to help people become owners.

“Last year we actually had 400,000 first-time buyers, which is a great number.

“We’re starting to turn the tide.

“But it’s critical for this administration and for our entire economic history if these numbers continue to be strong.”

Mortgage lengths have increased as house prices have risen – with the current UK limit of 40 years.

A longer mortgage means lower monthly payments but increases the overall cost.

The Building Society Association says the most popular among beginners are ages 30-35, with just 10 percent choosing under 20 years.

https://www.the-sun.com/news/5686212/major-change-mortgages-homeowners-pass-to-kids/ Big change for mortgages after homeowners offer 50-year deals that can be passed on to kids

DevanCole

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