40-year mortgages not the answer to the problem of affordability
Sinn Féin Housing Spokesperson, West Belfast MLA Fra McCann has said that 40-year mortgages are not the answer to the problem of affordability.
Commenting of the introduction of a 40-year mortgage 100% option by the Ulster Bank Mr McCann said:
"Sinn Féin has serious concerns about the introduction of 40-year 100% mortgages. Not only will it tie people to debt for 40 years it will also mean that they will in effect be paying far more for their homes over the lifetime of the mortgage. The real winner is the bank.
"The reality is that there have been 3 interest rate increases in the last year and whatever about fixed term mortgages the truth is that there are not long-term protections against increases in the rate.
"While a 40-year 100% mortgage may seem attractive at first because of slightly lower monthly payments this not the answer to the problem of affordability. Government must take the lead in providing affordable homes. There must be the political will to tackle the problem of over inflated prices. This is a low wage economy and people are being forced to spend an ever increasing percentage of their income of housing." ENDS