First-time home buyers are now typically taking out 30-year mortgages as rising house prices move people away from the once typical 25-year term, new data from UK Finance shows.
The record 30-years registered in June represents a significant jump from the 25.5 years reported in 2005 when the trade body first started compiling the data.
The data comes just after the latest Halifax data revealed that annual rate of growth stood at 11.8% in July, with a typical property now costing £293,221.
In 2005 the average property cost £156,236, while the average salary was around £23,900.
Back in July Boris Johnson said the Government were considering 50-year ‘ultra-long mortgages’ as a ‘creative way’ to help hard pressed homebuyers negotiate the ever increasing cost of purchasing a property.
Speaking at the time the Bank of England said it would ‘support any process that brought innovation into the mortgage space’ when asked about a potential 50-year mortgage.
