Habito launches 40-year mortgage.

Mortgage broker Habito has launched ‘Habito One’, a 40-year fixed rate mortgage with claims to be the longest ever product of its kind in the UK ...

Available from 60 -90 per cent loan to value (LTV), the Habito One has no  early repayment fees or exit fees with a promise that monthly installments will stay the same during the lifetime of the mortgage. Rates start at 2.99 per cent and are fixed for the full contractual term of the mortgage. There is a product fee of £1,995 which must be paid at the start of the mortgage and again if further borrowing occurs throughout the mortgage period.

Launching today founder and chief executive Daniel Hegarty says: “The mortgages we have available to us today are remnants of a different age and a different power dynamic between customers and lenders. The future has never been less predictable and we need our homes to provide us with safety and financial security. The vast majority of us on a mortgage that’s fixed for two to five years are effectively trapped in a system that doesn’t fit our financial future or our home-buying habits.

Currently, traditional mortgages offered in the UK are arranged over 25 years, but with high house prices and stringent affordability tests many borrowers are either having to revert to the bank of mum and dad or continually switch mortgages from short term deals of 2-5-years which means over the course of the mortgage they will be paying far more interest.

Habito has also announced plans to roll out 95 per cent LTV mortgages from early summer.

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