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Are 150 year fixed mortgages on the way?

By
Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL

SOARING house prices, rising interest rates - how to get a foot on the property ladder when the cost is way beyond the traditional two-and-a-half-times-a-salary ceiling?

As society becomes ever more property-obsessed, home-ownership is now the number one priority for 18 - 24 year olds in the UK, with 12.2% of them saying they have sacrificed university to save for a house, according to research by Lloyds TSB mortgages.

The Next Generation of Homeowners Report reveals that owning a home before the age of 30 is the most important life goal for 74% of youth.

It found that one in five twenty-somethings has forfeited their first choice career option in favour of a better job they don't enjoy to try to get on the property ladder. A further one in six admits juggling two jobs to help build a deposit towards a first home. And many are living at home indefinitely or have put their plans for world travel on hold in a bid to make the deposit.

The Council of Mortgage Lenders (CML) recently revealed that a combination of huge home loans and rising interest rates has driven mortgage repayments up to a 15-year high.

The US already has a 50-year mortgage and in Japan, 150-year mortgages are available but will the lengthy home loan come to the UK and the US??

I suppose you could always pass the house....I mean DEBT to your next of kin!

Comments (3)

Beth Bastian
Rosemont Financial Inc - Simi Valley, CA
Simi Valley Real Estate
Translated the word mortgage means "until death" so I guess 150 year mortgage makes sense.  
Jun 23, 2007 04:46 AM
Thomas Weiss
Thomas R. Weiss - West Palm Beach, FL
It would make for great payments..Kidding :0)
Jun 23, 2007 05:28 AM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL

I priced it out and it is only pennys more than an Interest only loan!

You don't start making sizeable amounts to the principle until year 75!

Jun 23, 2007 05:29 AM