The Bank of England has raised concerns about the rising proportion of homeowners taking out mortgages of 35 years or longer.
Threadneedle Street signalled yesterday that it was watching developments in the mortgage market closely as homeowners look for ways to limit the steep rises they face in monthly mortgage payments.
The share of new mortgage lending on terms of at least 35 years had climbed from 4% in the first quarter of 2021 to 12% in the three months to the end of June. In addition, a “small number” of owner-occupiers had moved onto interest-only mortgage deals as a way to limit monthly payments.
