LONGER mortgages of 30 years and over are becoming common in the UK, as demand soars due to rising house prices, inflation and low wage growth, a new report suggests.

The majority of independent mortgage brokers believe that the rise in demand for longer home loans is not likely to slow, according to the latest report from the Independent Mortgage Lenders Association (IMLA).

Some 69 per cent of mortgage brokers report an increase in demand for 35-year mortgages, with 13 per cent reporting a substantial rise in demand in the first six months of this year.

“In recent years, rising house prices, inflation and low wage growth have put significant pressure on prospective buyers’ incomes, meaning that many would-be borrowers now have to spread their payments out for longer periods in order to get a loan and to qualify for a mortgage under the affordability tests now in place,” said Peter Williams, executive director of the IMLA.

And the majority of brokers and lenders, 62 per cent and 68 per cent respectively, agree that longer term mortgages are an essential option for aspiring home owners.

“With many borrowers struggling to make home ownership a reality, it is recognised that the growing recourse to longer-term mortgages could impact upon people’s capacity to save for retirement,” Mr Williams explained.

“In order to prevent retirement saving and home ownership becoming mutually exclusive, Government and policymakers have a responsibility to tackle the root of the chronic supply/demand crisis facing the UK.”