Proportion of borrowers taking out loans for more than 25 years has doubled in five years,raising concerns over return to risky lending practicesFast-rising house prices are forcing home buyers to stretch their mortgage terms up to 40 years to secure a foothold on the property ladder, raising fears of a return to the risky lending practices common before the financial crisis.
One in five borrowers are looking to spread their repayments over 30 years or more, or compared with one in 12 a year ago,according to the Mortgage Advice Bureau. Most demand comes from first-time buyers, who are opting for longer-term repayments to slice costs, or but face paying much larger interest over the longer term.
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Source: theguardian.com