The demand for 35-year mortgages will make owning a home more like renting - from your bank

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The demand for 35-year mortgages will make owning a home more like renting - from your bank
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🏠 The epic house price inflation that made buying up homes look like a good investment is gone, and perhaps for good 🔎 Analysis by Victoria_Spratt

, as wages would need to catch up with house prices for the elastic relationship between the two to keep functioning.

So, when it comes to longer mortgage terms, rising interest rates, and falling house prices – caveat emptor indeed. At best, future generations of homeowners who buy without huge cash deposits will repay expensive mortgages into old age. At worst, they could end up repaying expensive loans taken out on homes that end up being worth less than they paid for them. Or, perhaps, we’ll end up like Japan where 70 and 100-year mortgages are passed down through generations of the same family.

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