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A chance to buy your own place or a government disgrace? The 50-year fixed mortgage is imposed to help the younger generation get on the property market; a promising proposal with major property positives.  


Would you take a mortgage over 50 years?

Primarily, the suggestion has come from the UK government amid a rise in living cost as well as impossible down payments and rent prices that are restricting young people from leaving their childhood home. There is recent data suggesting that almost a third of people aged twenty to thirty-four in the UK are still living at home, and as prices continue to soar, this percentage will only increase.

Long-term fixed-rate mortgages are suggested to improve affordability by stretching a loan out over a more extended period, reducing monthly payments. Currently, in the UK, the most extended mortgage in the UK is forty years, but some countries have already exceeded this number; for example, Japan has a fixed mortgage of one hundred years. These ultra-long mortgages have been considered a creative way to assist the first-time buyers to afford a home, and for some, it is seemingly the only way even to consider owning a home.

Positively, a 50year fixed mortgage rate means you can experience a better standard of living with lower monthly payments. A 5In addition, a-year mortgage can make home ownership easier to qualify for as a first-time home buyer. Regarding monthly payments, you will have more room in your budget for paying for alternate expenses.

In contrast, there are multiple disadvantages to a 50 year mortgage. This includes the fact that you may pay much more interest over the loan period. In addition, you will build equity in the home exceptionally slowly and fail to gain back much equity if you decide to sell the house a couple of years later. 

However, there are also plenty of concerns that the longer the fixed mortgage price, the higher the total repayments, which could result in unaffordable figures. 30-year fixed mortgage rates are deemed more attainable and maintainable for people as 50-year mortgages will come with higher interest rates than their 30-year counterparts and may be favoured over the extended 50-year fixed mortgage rate. 


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Miss. Claire White
W. Why Media
E. claire@whymedia.com