A number of
mortgage lenders are offering deals which will stretch for more than 40 years, new research has revealed.
Almost a third of providers allow borrowers to take out a long-term
mortgage, with the longest available deal lasting for 52 years, according to a study from MoneyExpert.
Additionally, fewer
lenders limit their
mortgages to 25 years, with 23 per cent applying this restriction.
MoneyExpert claims that this trend is a direct result of spiralling
house prices, which have made it more difficult for many
buyers to
find a mortgage .
Sean Gardner, chief executive of MoneyExpert, said: "It makes sense that lenders are responding by offering greater flexibility to borrowers whether it is by allowing them to
borrow more or by enabling [them] to spread
payments over a longer time."
He added that some borrowers could benefit by spreading their
mortgage payments over a longer period of time, although they should be aware that they will pay more
interest over the long term.
Abbey and
Yorkshire Building Society recently announced that they would be offering mortgages at income multiples of five times a borrower's salary.
