1 in 3 Home Loans longer than 30 Years

The Financial Conduct Authority’s January Sector View paints a worrying picture for the housing sector’s future. Not only are people born in the 2 decades before the year 2000 finding it more difficult to get onto the housing ladder, the amount they have to borrow in relation to their incomes has increased and the length of their mortgages is so long that they could be paying their mortgages well into retirement.

Mix Developments proposes that there is a review of the affordable and intermediate housing market to ensure that homes that are sold as affordable are not putting people under such financial strain. Mechanisms should be put in place to ensure that intermediate products are not only affordable to the first buyer of the home, but also second round buyers.

FCA Sector Views – published January 2019