{"id":3022560,"date":"2019-01-11T16:32:13","date_gmt":"2019-01-11T16:32:13","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=3022560"},"modified":"2019-01-11T16:32:13","modified_gmt":"2019-01-11T16:32:13","slug":"more-longer-term-mortgages-being-taken-out-fca-finds","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/01\/11\/more-longer-term-mortgages-being-taken-out-fca-finds\/","title":{"rendered":"More longer-term mortgages being taken out, FCA finds"},"content":{"rendered":"<p><strong>More people are opting for 30-year mortgages and increasing numbers will still have a mortgage when they reach retirement age, according to a new study.<\/strong><\/p>\n<p>The Financial Conduct Authority (FCA) have released their new Sector Views report, which reveals that 34% of <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/01\/09\/first-time-buyers-play-brexit-wait-and-see\/\">first-time buyers<\/a> (FTBs) who took out a mortgage in 2017 opted for a deal lasting 30 years. That\u2019s significantly higher than the 20% reported a decade earlier, and tallies with other studies.<\/p>\n<p>In early 2018, <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/01\/31\/first-time-buyers-choosing-30-year-mortgages-reduce-monthly-costs\/\">the English Housing Survey<\/a> found that the numbers of people choosing longer-term mortgages had risen by 40%. The numbers of people opting for a 20 to 29-year deal had fallen, driven by a desire to reduce monthly payments while still trying to get a foothold on the property ladder.<\/p>\n<h4>Looking long term becomes increasingly popular<\/h4>\n<p>The FCA now show that deals lasting 30 years or more are the most popular option for FTBs, while that title belonged to 20 to 25-year mortgages in 2007. \u00a0They also find that 40% of people who bought a home in 2017 will be aged 65 or more when their mortgage matures.<\/p>\n<p>A <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/10\/09\/first-time-buyers-helped-by-increase-in-40-year-mortgages\/\">Which? report in September last year<\/a> found that around half of lenders said they were offering deals of 40-years, but not all data pointed towards high take-up of such offers. According to UK Finance, in the first half of 2018, only 4% of mortgage approvals were on terms of 36 years or longer.<\/p>\n<p>The FCA\u2019s new study also flags up the rise of mortgages taken out on increasingly high multiples of a borrower\u2019s income. It finds that a quarter are now on at least four times income \u2013 only last month, <a href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/12\/13\/mortgage-lenders-relax-criteria-with-increasing-income-multiples\/\">Barclays<\/a> became the latest lender to offer up to five times income if borrowers are on at least \u00a330,000 and have a 20% deposit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More people are opting for 30-year mortgages and increasing numbers will still have a mortgage when they reach retirement age, according to a new study. The Financial Conduct Authority (FCA) have released their new Sector Views report, which reveals that 34% of first-time buyers (FTBs) who took out a mortgage in 2017 opted for a<a class=\"excerpt-read-more\" href=\"https:\/\/www.buyassociationgroup.com\/en-gb\/2019\/01\/11\/more-longer-term-mortgages-being-taken-out-fca-finds\/\" title=\"ReadMore longer-term mortgages being taken out, FCA finds\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":3875,"featured_media":18511,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,6],"tags":[25,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/3022560"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3875"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=3022560"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/3022560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/18511"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=3022560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=3022560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=3022560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}