<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1EH4FG_0wPulPhw00" alt="https://img.particlenews.com/image.php?url=1EH4FG_0wPulPhw00" width="1000" height="600" ></figure>The value of 40-year mortgages in the UK rose by 39% to £14.4 billion in the year ending June 30, 2024, up from £10.3 billion the previous year, according to Lubbock Fine Wealth Management.The wealth management arm of accounting firm Lubbock Fine attributed the rise to increasing interest rates over the past two years, which have pushed more homebuyers towards extended mortgage terms with lower monthly payments.However, stretching a mortgage over 40 years means buyers will pay an estimated 32% more in interest than they would on a 25-year term.“High interest rates mean buyers are repaying a greater amount over a longer period,” said Andrew Tricker (pictured), director at Lubbock Fine Wealth Management. “The rapid growth in long-term mortgages raises concerns over whether individuals fully understand the financial burden they’re taking on.”Despite the higher long-term costs, demand for 40-year mortgages has surged. The number of these mortgages sold increased by 37% to 64,000 in the 2023/24 financial year, up from 46,000 the previous year. Over the past five years, sales of 40-year mortgages have grown by 213% from 20,000 in 2019/20, with the total loan value tripling from £3.9 billion.Rising house prices have also contributed to the growth in 40-year mortgage uptake, according to Lubbock Fine Wealth Management. The average UK property now costs £330,000, making it harder for buyers to afford larger monthly payments.“The high cost of housing today makes the lower monthly repayments of 40-year mortgages appealing to those trying to get on the property ladder,” Tricker noted. “Many buyers focus on what is affordable in the short term, without fully realising the extra costs of a longer loan term.”Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.</div></body>

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Demand for 40-year mortgages soars amid rising interest rates

The value of 40-year mortgages in the UK rose by 39% to £14.4 billion in the year ending June 30, 2024, up from £10.3 billion the previous year, according to Lubbock Fine Wealth Management. The wealth management arm of accounting firm Lubbock Fine attributed the rise to increasing...