A new inter-generational mortgage, which allows homebuyers to take out longer-term loans, could be part of the answer to the affordability crisis in the housing market, according to financial brokers.
Kent Reliance Building Society this week launched a mortgage allowing consumers to pass on their home loans to their children or other beneficiaries on death.
In theory, homeowners will never repay any of the money borrowed to buy their homes as the mortgage works on an interest-only basis.
References: Financial Times 26/08/06 page 3
