LiveMore comment on today's UK Finance Household Finance Review figures

04 September 2024

Simon Webb, managing director of capital markets and finance at LiveMore, commented: “It’s gratifying to see lending growth finally emerge in Q2, but taking out longer term mortgages grew alongside this. Since 2010 there has been an emerging pattern of people stretching their mortgage affordability by taking out a term of 30 years or more.

“A combination of rising inflation, mortgage rates and the cost of living accelerated this in 2023 and UK Finance says this trend has continued in Q2 of 2024, still primarily to stretch affordability as much as possible to get the loan size needed to keep up with ever increasing house prices.

“Borrowers are opting for mortgages of 30+ years but there are also options for fixed for life mortgages. These are repaid when the borrower passes away, moves into care or sells up. With a rapidly growing ageing population we need to cater for their financial needs and that includes creative mortgages options.”