PM floats ultra-long mortgage plan

Ultra-long mortgages that could be handed down to borrowers’ children are being considered by Boris Johnson as a way to get young people on the housing ladder. Loans that last for 50 years are set to be encouraged as the prime minister seeks “creative ways” to increase home ownership in Britain. More flexible mortgage products increasingly are being seen as the most practical route to boost home ownership among the young after a Tory revolt blocked a relaxation of planning laws to encourage more building. Under plans being worked on in Downing Street, people who would otherwise struggle to take out a loan will be encouraged to take out longer-term mortgages. Their children would be able to inherit the debt along with the property. The idea is likely to fuel concerns about saddling young people with their parents’ debt and whether such loans would stoke further house price inflation. The Times (£)