Should 40 year mortgages be banned?

[DistinguishedSocialCommentator]

Reading and hearing more and more of this.

IMO, extending mortgages and making almost a norm re 40 years for many, and it was 25 years when we got our first and second mortgages - 40 years IMO is just fueling the price rises in property

AIBU seeking a ban on 40 year mortgages??

IMO, 30 yrs is more than enough and there must always be a minimum 10/15% deposit and a 2 year record of saving money. This IMO, will gradually settle property prices.

FYI, we paid off on our own property and a couple of rentals about 14 years ago possibly a bit more

NB: Of course, no government will agree to that as it will hold back national growth and ledners will definitely fight it as it hits their profits. But 40 years mortgage is more than a life sentence into

Our 25 year mortgages we paid off with 15 and 14 years respectively

40 yr metages benefits the lenders bigger profits and feuls property prices

https://www.standard.co.uk/business/hsbc-40-year-mortgage-deal-interest-rates-bank-of-england-marathon-prices-lender-bank-big-six-b1103513.html

a teachers/NHS/etc/etc pay goes a lot further in Blackpool, Bradford, Stoke-on-Trent, Coventry, Preseton, etc,et,c than it does in London

So if all of the teachers and nurses moved north for affordable housing, who is going to teach and nurse the population of London?

I totally agree. No one needs more than 1 house.

But they do. People who will never be able to buy need them to own two houses and rent them out, as we have seen what’s happened when landlords are selling up, people are struggling more and more, with increased rents, moving to other areas, in hostels or temp accommodation by councils .

A lot of people on here really don't understand supply and demand.

Property prices have been rising excessively for decades because demand exceeds supply.

This government like high asset values. It generally benefits those already wealthy. They have no interest in prices falling in real terms. So any time prices start dropping (eg now when interest rate rises) they desperately search for demand boosting solutions. Deposit schemes. Shared ownership. Help to buy. 40 year mortgages. Yes it feels nice if the person who thought they couldn't afford is saddled with a vast debt to prop up property prices but it would be better if vastly more homes were built to increase supply and allow prices to fall in real terms - allowing those same people to buy but borrow less.

This also goes hand in hand with more money in their pocket to spend - good for the economy!!

Excellent post
May I add/reiterate that is not just money in "gov's pockets" but that of the mass of lenders, builders etc.

The higher the house price, the more tax the gov get. For every BTL a person buys, even more stam duty/tax for gov.

House prices will rise with 40 year mortgages just like they did when the gov gave a so-called holiday for "first time buyers."

The bottom line is supply and demand, no ifs, no buts.

The gov selling 2 million council homes at, up to 70% discount - millions are sitting on or cashed in hundreds of thousands of pounds depending on when they sold. If you have never rented and always had your own property and buy a rental in order to ensure you are not a burden to the taxpayers ie benefits - the gov is shafting you hard.

To me, in this thread a lot of envy of those who have worked hard and saved a little money and bought a BTL, Some claimed it was "easy xx years ago" so my question was, if it was that "easy" why did many of the 50% that rented at the time buy? The lenders were giving almost 100% loans at the time

@DistinguishedSocialCommentator this is why I think house prices in much of Europe are far more stable and don't have as much upward movement- even in many citys- there is often more good quality social housing of all types and lots of big apartments too and people have less of a 'thing' about apartments- even with families. Consequently whilst there is still demand , it's less frenetic both for buying houses and flats . I know quite a few Germans from business who actually rent a family sized 3 or 4 bed apartment in a nice German city in a convenient location but own a flat or small house in Majorca or southern Spain or Turkey etc . We have kind of forced many people into buying sometimes none too great homes or moving areas away from family and friends because of the lack of other options , constant upward price rices and lack of security within the rental market- and masses of private renting has made this worse.