The Bank of England has said it would support any process that brought innovation into the mortgage space when asked about proposals for a potential 50-year mortgage.
The scheme is one of a number of plans being mooted by the Government as it looks to tackle the housing crisis.
Other countries such as Japan have similar products with some lenders offering fixed mortgage terms as long as 100 years.
Commentators’ responses to the proposal have been mixed so far. However, Bank of England Governor Andrew Bailey said the central bank would “support and engage in any process that would envisage innovation in the market,” when asked about the proposals during a press conference on Tuesday.
While Sam Woods, head of the Prudential Regulation Authority, added that markets outside the UK offer much longer fixed-rate mortgages and function “perfectly well.”
Building Societies Association (BSA) figures show that 37% of first-time buyers took out mortgages of 30 and 35 years, while only 10% opted for less than 20 years.
