More than 10,000 Britons took out mortgages they won’t have paid off until 2058 last year, with one couple signing up for a 40-year loan at 65
- Last year 42 per cent of borrowers took out a loan lasting longer than 25 years
- Almost 10,600 40-year mortgages were taken out in 2018
- One loans went to a 65-year-old couple who could still be repaying it aged 105
Thousands of house buyers are taking out marathon 40-year mortgages which will saddle them with vast interest payments, figures show.
Almost 10,600 four-decade mortgages were taken out in 2018 as buyers battled to get on the property ladder in the face of sky-high prices.
One of the loans went to a 65-year-old couple from Tunbridge Wells in Kent – who in theory could still be repaying it when they are 105.
Almost 10,600 four-decade mortgages were taken out in 2018 as buyers battled to get on the property ladder in the face of sky-high prices (stock)
The figures, obtained by the Sunday Times following a Freedom of Information request, reveal that last year 42 per cent of borrowers – 507,741 people – took out a loan which lasts longer than the traditional 25 years.
The average property now costs £226,798, more than eight times what the typical worker is paid, and long-term mortgages help reduce monthly repayments. However, they are more expensive in the long run because of the extra interest.
A £150,000 mortgage at 2.5 per cent would cost £202,000 to repay over 25 years. A 40-year mortgage would mean a total bill of £237,000.
The average property now costs £226,798, more than eight times what the typical worker is paid (stock)
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