Fifty-year home loans would get more on ladder but come with risks

Posted on July 1, 2022 by Admin

Analysis: longer mortgages would unlock the bind many renters find themselves in but could be expensive

A 50-year home loan might sound depressing to some, but perhaps not if the alternative is never being able to buy a property. Long-term fixed-rate mortgages are an emerging financial product that should in theory allow first-time buyers who are currently priced out of the market to get on the housing ladder.

By spreading the repayments over longer – the average for mortgages taken out this year is 29 years – buyers should be able to borrow up to eight times their income, rather than the current average of 3.2 times, say potential providers. The loans would be backed by borrowing from pension funds and insurance companies rather than against less stable consumer deposits, to satisfy the Bank of England’s prudential requirement.

No 10 considers 50-year mortgages that could pass down generations

Posted on July 1, 2022 by Admin

Cautious welcome for idea to tackle housing crisis but experts warn of risks to those inheriting

Downing Street is exploring the idea of trying to tackle the housing crisis with ultra-long mortgages of up to 50 years that could pass between generations, allowing more people to build up equity rather than pay rent.

Mortgage experts said the idea could bring some benefits but flagged problems, including the potential to saddle children with debt, and the fact it would not tackle the fundamental issue of housing supply.

Boris Johnson promises action on cost of living crisis but says higher wages risk further inflation – as it happened

Posted on June 9, 2022 by Admin

This live blog has now closed, you can read more on Boris Johnson’s comments about a potential ‘wage-price spiral’ here

The Queen has received a present from the cabinet to mark her Platinum Jubilee, No 10 says. It is a specially-commissioned musical box, with pictures of all the 14 prime ministers who have served here around the side. When it opens it plays Handel’s Hallelujah.

In every office there is always someone who organises the presents and this picture, on the No 10 Flickr account, suggests that in cabinet that job falls to Michael Ellis, the paymaster general.

Fresh calls for windfall tax on companies that prospered during Covid

Posted on September 20, 2021 by Admin

Research highlights six firms that increased their profits by a total of £16bn

Campaigners have issued fresh calls for a windfall tax on companies that prospered during the pandemic, after research highlighted six firms that increased their profits by a total of £16bn.

The outsourcing firm Serco and online clothes retailer Asos were among the companies that saw their global profits more than double over the last financial year, while one investment trust, Scottish Mortgage, saw its returns grow to nine times the average of preceding years.