Government looks at 50-year mortgages that can be passed down through generations to tackle housing crisis | UK News

Homeowners could soon get a 50-year mortgage to then pass on to their children when they die, under a new scheme being considered by the government.

Japanese-style loan arrangements may show that people can buy homes with no or no expectation of completing mortgage payments over the course of their lives.

Instead, the unpaid assets and liabilities will be passed on to their children.

Ask about the Project, Prime Minister Boris Johnson said he was “definitely” looking at intergenerational mortgages.

It came like Mortgage loans fell 36% in April in another signal that the red-hot housing market is starting to lose momentum.

This idea has gained popularity in the government because it can allow people to buy a house larger than what they can afford.

How long can mortgages last?

In Japan, the 100-year clause has been enacted, but experts remain skeptical about the impact of the proposal in the UK.

The government is trying to increase home ownership with a package of measures, including extending purchasing rights to housing association tenants and trying to increase access to 95 per cent mortgages for buyers who are struggling. having trouble saving a deposit because of the high rent.

When asked about mortgage ideas during a visit to Madrid this week, the prime minister told reporters: “I think there is more scope to help people with 95% mortgages, there are now quite a few products that we i have tried.recommended.

“But we also wanted to find creative ways to help people master.

“Last year, actually, we had 400,000 first-time buyers, which is a great number, we’re starting to turn the tide, but what’s important for this government and the economic story is telling. our general if those numbers continue to be strong.

“We need young people who have faith, have a deposit, have a mortgage package to be able to own it.”

Read more:
How will a 1.25% increase in interest rates affect mortgages?

The most common mortgage term among first-time buyers is around 30 to 35 years, but a multigenerational approach can extend that term by decades.

However, commentators warn that it will not solve housing supply problems and could increase property prices further.

Scott Taylor-Barr, financial advisor at Carl Summers Financial Services, said: “I feel that Boris Johnson is coming at this issue from the wrong direction.

“It’s not the mortgage market that is preventing people from becoming homeowners; it’s the price of the property relative to everyone’s income.”

Source link


News7g: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button