Real estate: In the United Kingdom, first-time buyers are in debt for more than 40 years
Real estate: In the United Kingdom, first-time buyers are in debt for more than 40 years – (France 2)
Across the channel, more first-time buyers are in debt in their 40s. This formula, impossible in France, is dangerous for future owners.
Is lifetime borrowing becoming commonplace? In the United Kingdom, more and more borrowers, even the most financially secure, are signing 40-year loans. It may soon happen to the thirty-year-old French banker city. With the support of a specialized real estate agency, he is looking for a three-room apartment that he is renting. The amount borrowed is 700,000 euros. If you borrow over 40 years instead of 25 years, it will decrease 15% His monthly payments. He is preparing to repay the loan till the age of 74.
A formula that appeals
This is unimaginable in France, where loans cannot exceed 25 years. “It’s been a long time and after the idea, he’ll have to pay him back soon. 74” to try to be free beforeFuture owner Cedric Massey explains. Over 40 years, the cost of borrowing is almost double compared to a 25-year loan. But in the face of rising rates, first-time buyers are increasingly turning to this formula in the United Kingdom.
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