Lenders should reflect changes by offering 50-year mortgages

LENDERS should consider offering mortgages for terms of up to 50 years, according to a report released yesterday by City giant Legal & General.

The research compares 35-year-olds today with their equivalent in 1977 and alleges that the financial services industry has failed to keep up with demographic changes.

Highlighting increases in intergenerational dependency and the decline of fixed retirement ages, the report criticises financial products that are still designed for more traditional societies.

As well as changes to mortgages, it considers an ISA-equivalent for personal employment insurance.

“Our attitudes and aspirations haven’t kept pace with the speed of the changes over the last 35 years,” said Legal & General’s John Godfrey.