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Mortgages that last almost 60 years that are currently being offered by lenders
in an attempt to get consumers onto the property ladder have been labelled
as 'madness'.
In a bid to attract first-time buyers, the 57-year home loan, from Abbey will
require a lower monthly payment but soaring interest rates must be taken into
account, claims a leading mortgage broker.
Nick Gardner, director of mortgage broker Chase de Vere Mortgage Management,
explained: "Life-long mortgages are a false economy.
"You end up paying literally tens of thousands of pounds in extra interest.
"It really is not a sensible thing to do. The idea of paying off a mortgage for
40, 50 or even 57 years is madness."
In April, Nationwide also increased its maximum mortgage term to 40 years from
35.
Source:
Getting Paid
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