WORRIED BY rising interest rates? Why not spread your payments over a longer period? According to a new survey, lenders are offering mortgages running for up to 57 years boasting more affordable monthly payments. The only catch, according to mortgage brokers, is that a borrower with a £150,000 mortgage over 57 years would end up paying £120,000 more in interest than one with a 25-year loan.
The Bank’s move was no surprise and the Council of Mortgage Lenders warned borrowers to expect another increase early next year. Also today, the Halifax said annual house price inflation is now running at 8.6% after a 1.7% increase in October alone.