THE under-30s are entering into mortgage agreements so long they will have paid off their student loans before the end of them, estimates suggest.
Economists are concerned that 40-year mortgages mean a generation of graduates will be able to clear £60,000 burden of student debt before their houses are two-thirds paid for.
Professor Helen Archer of the LSE said: “The young need to stop trying to evade their responsibilities. Ultra-long mortages are shirking, plain and simple.
“Yes, they’re paying far more in the long-term, which helps the banks. Yes, the interest on a mortgage is far less than the six to eight per cent on student loans. But what about house prices?
“By squatting in the same £670,000 one-bed London flat for four decades, miserably servicing their debt, they condemn the rest of us to a moribund housing market. I’ve invested in property. Should I be happy with a pathetic 35 per cent return?”
28-year-old Lucy Parry said: “We’ll need to live until 70, work until 70, never split up and never have children, but we should clear our loans and have five mortgage-free years before the state take our home to pay for our care fees.
“This really is a miracle of a country. I wouldn’t live anywhere else. I can’t, the old people voted against it.”
