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FirstFT: New UK lender plans 50-year fixed rate mortgages

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good morning.New lender granted license to offer by UK financial regulator fixed rate mortgage up to 50 years It’s a move aimed at helping borrowers manage surging inflation.

UK-based specialist lender Perenna plans to initially offer fixed-rate mortgages for 30 years, before rolling out longer-term products.

That approval comes as the Bank of England raised interest rates to a 40-year high of 9.4% to combat rapid inflation.

With property prices hovering high, long-term mortgages are being considered as a way to help young people take out mortgages. UK house prices hit a record last month, but yesterday’s data from Rightmove showed the average price in August fell 1.3% to £365,173.

Banks typically offer fixed-rate mortgages for up to 10 years, with the most popular products lasting two to five years, said Ray Bolger, senior manager at broker John Chercol.

Perenna could offer interest rates of 4 to 4.5% on 30 to 50 year loans, but this would be affected by the starting gold yield.

Do you have a story about having difficulty climbing the ladder in your home? Share with me at [email protected], which may appear in future newsletters. Thank you for reading FirstFT Europe/Africa

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