Now is the time for long-term thinking on mortgages

Peopleschampion.com response to Bank of England Monetary Policy decision today.

“We desperately need some fresh thinking for first-time buyers. Increasing the income multiples is simply not sustainable and the so-called ‘affordability’ assessments being adopted in some cases to meet repayments is highly dangerous if a person’s financial situation changes,” said Jim Spowart, the chairman of Peopleschampion.com, a leading price comparison site.

“I believe we need some longer-term products which link in student loans, mortgages, with pensions and future savings. I think new offsetting products for first-time buyers have to be looked at properly by banks, building societies and the house builders,” he said.

“People want to own their own homes and we need regulation which allows the introduction of a decent “Life-time” mortgage where consumers can repay their home loan early. It is quite possible to do.”

“I also think too many people have been lured into the buy-to-let market as a substitute for a pension– and this has placed undue pressure on houses in many hot-spots,” added Mr Spowart.