UK home buyers’ average mortgage reaches 30 years
UK home buyers’ average mortgage has reached a record high of 30 years, while the mortgage approvals fell more than expected in June, according to data compiled by UK Finance.
The increased demand for homes purchases during the pandemic has pushed prices towards unsustainable levels.
Meanwhile, Bank of England raised the interest rates as it expects the economy to head into a recession that will last more than a year.
The long-term borrowing system forces people to pay more for real estate, because the monthly payments have spread out over a longer period.
Britain’s ruling Conservative and Unionist Party have introduced the possibility of obtaining fixed-rate mortgages for 40 or 50 years to boost the housing market.
It expected that three million homeowners set to see their fixed-price deals expire either this year or next, UK Finance mentioned later.