• iconNews
  • videos
  • entertainment
  • Home
  • News
    • UK News
    • US News
    • Australia
    • Ireland
    • World News
    • Weird News
    • Viral News
    • Sport
    • Technology
    • Science
    • True Crime
    • Travel
  • Entertainment
    • Celebrity
    • TV & Film
    • Netflix
    • Music
    • Gaming
    • TikTok
  • LAD Originals
    • Say Maaate to a Mate
    • Daily Ladness
    • Lad Files
    • UOKM8?
    • FreeToBe
    • Extinct
    • Citizen Reef
  • Advertise
  • Terms
  • Privacy & Cookies
  • LADbible Group
  • UNILAD
  • SPORTbible
  • GAMINGbible
  • Tyla
  • UNILAD Tech
  • FOODbible
  • License Our Content
  • About Us & Contact
  • Jobs
  • Latest
  • Topics A-Z
  • Authors
Facebook
Instagram
X
Threads
Snapchat
TikTok
YouTube

LAD Entertainment

YouTube

LAD Stories

Submit Your Content
50-Year Mortgages That Pass Through Generations Could Be Introduced In UK

Home> News

Published 17:24 2 Jul 2022 GMT+1

50-Year Mortgages That Pass Through Generations Could Be Introduced In UK

Mortgages that are 50-years-long and would pass through generations could be introduced in the UK.

Gabriella Ferlita

Gabriella Ferlita

Mortgages that are 50-years-long and would pass through generations could be introduced in the UK as a way to tackle the housing crisis.

MPs are exploring the scheme, with the idea that hopeful homeowners could build up equity rather than paying rent.

Under the plan being overlooked by Downing Street, this lengthy mortgage period would allow first-time homeowners to borrow larger sums of money with the possibility of passing the debt on should they not be able to clear it, The Guardian has reported.

However, it is not yet clear what steps the government would take in order to fulfil this idea.

Advert

Mortgages that are 50-years-long and would pass through generations could be introduced in the UK.
Unsplash.

Meanwhile, mortgage experts agree that a scheme of this calibre could allow home buyers some benefits, but it could also bring the issues of piling debt onto their children and doesn’t address the issue of the current housing supply crisis.

Other housing schemes being considered for a possible roll-out by the government include freeing up council-owned land to rapidly build homes, as well as exploring whether schools and hospitals could build homes for key workers who are priced out of living in local areas where they work.

During the Nato summit in Madrid, Prime Minister Boris Johnson confirmed that these schemes were being considered and added that the government 'wants to find all sorts of creative ways to help people into ownership'.

He said at the event: “Last year we had 400,000 first-time buyers. That’s a great number, we’re starting to turn the tide, but it is crucial for this government and for our overall economic story if those numbers continue to be strong.

Advert

The scheme could be used as a way to tackle the housing crisis.
Unsplash.

“We need young people to have the confidence, to have the deposits, the mortgage packages to be able to get into ownership. If you’re good enough to pay a lot in rent, we should find ways to help you to convert that into a mortgage.”

Reporters asked if he was considering ultra-long mortgages, to which he replied: “Yes, certainly.”

However, the plan of transferring mortgages between generations is not a new idea, having been pioneered in Japan where family mortgages of 100 years have been offered for quite a while.

Meanwhile, in the UK, relatively long mortgages are already the most common for homeowners. According to the Building Societies Association, 37 percent of first-time buyers took out mortgages of between 30 and 35 years, with only 10 percent opting for a mortgage of less than 20 years.

Featured Image Credit: Alamy

Topics: UK News, Money, Politics

Gabriella Ferlita
Gabriella Ferlita

Gabriella Ferlita is a full-time journalist at LADbible Group, writing on lifestyle, communities and news across Tyla, LADbible and UNILAD. When she's not writing, she's fussing over her five-year-old Toyger cat, Clarence.

X

@Gabriellaf_17

Advert

Advert

Advert

Choose your content:

an hour ago
2 hours ago
3 hours ago
  • an hour ago

    Traveller explained how she came out £550 in profit after making clever decision in airport

    The Delta Airlines customer got even luckier after eventually arriving at her destination

    News
  • an hour ago

    Exact amount of time smoking one cigarette takes off your life, study suggests

    We all know smoking isn't good for you, but how bad is it really?

    News
  • 2 hours ago

    'Sleeping prince' dies 20 years after being left in coma following London accident

    He was involved in an accident at the age of 15

    News
  • 3 hours ago

    Wife of man who died after being sucked into MRI machine explains how it 'snatched him'

    The 61-year-old died in hospital two days later

    News
  • Voting age in UK to be lowered to 16 in next general election
  • Area in UK that could be affected as 50-year-old spaceship set to crash back to Earth anytime now
  • Major change to UK passports set to be introduced that could change how millions travel
  • Warning issued to every driver in UK over popular fuel-saving method that could be 'dangerous'