{"id":5923,"date":"2017-10-20T14:54:29","date_gmt":"2017-10-20T13:54:29","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5923"},"modified":"2017-10-20T14:54:29","modified_gmt":"2017-10-20T13:54:29","slug":"long-mortgage-terms-become-popular","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/news\/long-mortgage-terms-become-popular\/","title":{"rendered":"Long mortgage terms become more popular"},"content":{"rendered":"

Almost <\/span>seven <\/span>out of<\/span> ten mortgage brokers report<\/span>ed<\/span> an increase in demand for 35-year mortgages <\/span>according to<\/span> <\/span>the Intermediary Mortgage Lenders Association\u2019s (IMLA\u2019s)<\/span> latest Intermediary Lending Outlook research<\/span>.<\/span><\/p>\n

More than three-quarters of brokers (77%) and 74% of <\/span>mortgage <\/span>lenders <\/span>interviewed by the mortgage trade association believe that the<\/span> increase in demand for 35-year term mortgages is an \u201cinevitable consequence\u201d of low wage growth and rising house prices<\/span>.<\/span><\/p>\n

\u201c<\/span>In recent years, rising house prices, inflation and low wage growth have put significant pressure on prospective buyers\u2019 incomes, meaning that many would-be borrowers now have to spread their payments out for longer periods in order to get a loan (and to qualify for a mortgage under the affordability tests now in place),\u201d commented Peter Williams, executive director of IMLA.<\/span> \u201c<\/span>Recently the PRA raised concerns about longer term mortgages and their negative impacts. In reality, around a third of first-time buyers take out a mortgage with a term of over 30 years and most of th<\/span>ese are for less than 35 years.\u201d<\/span><\/p>\n

The mortgage industry believes that<\/span> 35-year terms are an important option for consumers \u2013 but one in <\/span>16%<\/span> of brokers and lenders worry <\/span>that such long mortgages<\/span> will limit people\u2019s capacity to save for retirement.<\/span><\/p>\n

\u201cThe majority of brokers (62%) and lenders (68%) agree that longer term mortgages are an essential option for aspiring homeowners and would argue that this is a response to reality and remains responsible lending<\/span>,\u201d continued Willia<\/span>m<\/span>s.<\/span> <\/span>\u201c<\/span>However, this in no way lets the government off the hook in needing to act swiftly to address the housing crisis. With many borrowers struggling to make homeownership a reality, it is recognised that the growing recourse to longer-term mortgages could impact upon people\u2019s capacity to save for retirement albeit this is offset to a degree by the purchase of a property asset.<\/span>\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Almost seven out of ten mortgage brokers reported an increase in demand for 35-year mortgages according to the Intermediary Mortgage Lenders Association\u2019s (IMLA\u2019s) latest Intermediary Lending Outlook research. More than three-quarters of brokers (77%) and 74% of mortgage lenders interviewed by the mortgage trade association believe that the increase in demand for 35-year term mortgages… Read more »<\/a><\/p>\n","protected":false},"author":1955,"featured_media":4554,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-5923","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-mortgages-money"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/5923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/1955"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=5923"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/5923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/4554"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=5923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=5923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=5923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}