First time buyers increasingly willing to take on longer mortgage terms

07-Dec-2006

First time buyers are increasingly willing to take mortgages that far exceed the traditional 25-year term, research suggests.

According to a study by HotProperty, first time buyers are increasingly opting for 50-year mortgages, where payments will still be due long into retirement.

Shawn Luetchens, managing director of HotProperty, said: "50-year mortgages are already popular in countries like Japan, and with the UK's property prices very high … it is not surprising that so many British first time buyers are interested."

Although Japanese first time buyers are increasingly opting for longer-term loans - a 100-year mortgage has recently been introduced - mortgage interest rates are currently around 2.5 per cent.

However, longer-term mortgages that extend into retirement may negatively affect an individual's economic strategy for life in retirement, Mr Luetchens warned.

Despite these risks, first time buyers are optimistic about obtaining a property, according to the study.

To find out more about this mortgage, contact a good mortgage broker.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

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