Mortgage repayment terms extended

The demand for property in the UK far exceeds its supply which means that house prices will continue to rise, according to one property expert.

According to the Building Societies Association (BSA) January has seen the highest mortgage lending from building societies on record.

Neil Johnson, from the BSA, said: "Demand for property is so much greater than supply and while that is the case, you will have this rising market.

"We expect to see house prices still rising albeit at a slightly slower rate than before."

Another report says that the UK has also seen huge increases in repayment terms for mortgages. Whereas in the 1980s most mortgages were repaid in 25 years, in 2007 some 80 per cent of mortgages have longer repayment terms.

This is due to affordability becoming increasingly difficult for today''s first time buyers, but still buyers are not being deterred and 38 per cent of Britons say they are actively seeking a mortgage with a longer repayment term, according to a survey by Moneyfacts.co.uk.


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