Government considers 50-year generational mortgages

The Government is considering plans for 50-year cross generational mortgages as a way to increase homebuyers purchasing power.

Under the scheme, similar to what already happens in Japan, borrowers could end up passing on mortgages to their children when they die.

The scheme is one of a number of plans being mooted by the Government as it looks to tackle the housing crisis.

Other ideas being considered include freeing up Government-owned land for rapid homebuilding, and exploring whether institutions such as schools could build homes for key workers.

The Prime Minister, Boris Johnson, said: “We want to find all sorts of creative ways to help people into ownership.

“Last year, actually, we had 400,000 first-time buyers, that’s a great number, we’re starting to turn the tide, but it is crucial for this Government and for our overall economic story if those numbers continue to be strong.

“We need young people to have the confidence, to have the deposits, the mortgage packages to be able to get into ownership.”

When asked about cross-generation mortgages, Johnson said he was “certainly” considering it.

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.

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