Will a lifetime mortgage help your home hopes?

Will a lifetime mortgage help your home hopes?

Will a lifetime mortgage help your home hopes?

Will a lifetime mortgage help your home hopes?

Not one but two mortgage companies will start offering lifetime fixed-rate mortgages in 2021, in a move that could fundamentally change how we finance house purchases.

Whether you should fix your mortgage and how long for is a common question on The Independent’s money pages. The longer you fix, the greater your financial stability – but usually you pay extra for that peace of mind.

Short-term fixes or variable rates are usually cheaper than longer ones. But fixing means you know what the repayment will be each month and there’s no risk it will rise to an unaffordable level.

But the longest most people will fix for is five years, although a few mortgage deals let you fix for as long as 10. Yet a newly launched mortgage from Habito will let you fix for 40 years, and the lender Perenna is planning to launch a 30-year-long mortgage this summer.

So why the sudden innovation in the mortgage market – and could it be the answer to making repayments affordable? Or does it risk leaving buyers battling mortgage repayments for far longer than normal?


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