UK could introduce 50-year home loans


One in three first home buyers blow their budget, singles spend close to $400 each month in pursuit of love, and property listings at highest since 2011. Here are five things you may have missed this week.

Budget blowout: One in three first home buyers exceed their limit

First home buyers across the country are spending more than planned on their new home.

50 year home loans uk

Finder's First Home Buyer Report 2022 shows more than one-third of recent first homebuyers (37%) blew their budget - in some cases by six figures.

Almost one in 10 (8%) first-time buyers paid more than $100,000 over their budget. A further 8% paid between $50,000 and $100,000 over.

Only one in five managed to buy below their intended budget.

Finder's Sarah Megginson says part of the problem is that property prices may be underquoted to bait buyers.

She explains that underquoting is illegal, but adds, "It does happen, particularly in the case of auctions, where underquoted prices can attract more buyers and lead to a bidding war."

Spending more than planned can land buyers in hot financial water especially if it means struggling to secure loan approval. Having a home loan pre-approved can be a useful tool to set - and stick to - a buying budget.

Singles spend $43 billion a year on dating - up four-fold in five years

The growth of dating apps is seeing singles spend $384 a month in pursuit of romance according to new research from ING.

Total spending to find true love has almost quadrupled, rising from $11.7 billion in 2017 to $42.8 billion in 2022.

ING says the average singleton goes on three dates per month, compared to just one in 2017, with an average monthly dating spend of $384.28, compared to just $153.93 five years ago.

The price of dating goes beyond a few drinks and a meal to include a variety of popular pre-date expenses including new clothes, hair services and new shoes.

Matt Bowen, Head of Daily Banking at ING Australia says, "Over the past few years, the growth of dating apps has opened a new world of possibilities for singles looking to find love. These findings show that Aussie singles are investing more on their love lives as a result."

He adds, "Not only are we going on more dates, we're also spending more on those less-considered costs such as app subscriptions, pre-date beauty regimes or gifts."

Bowen notes that love doesn't have to cost the earth.

He suggests strategies such as "getting outdoors and enjoying everything free that nature has to offer" as well as searching the web for restaurant deals or picking venues with happy hour savings to reduce dating costs.

Property market sees busiest winter in a decade

Winter is traditionally a quiet season for the property market, but not this year.

The latest PropTrack Listings report from REA group, which owns, says new listings were 8.5% higher nationally in June compared to the same month last year, making it the busiest start to winter since 2011.

PropTrack Economist Angus Moore says the wave of new supply coming to market, particularly in Sydney, Melbourne, and Canberra, will help to "place greater downward pressure on prices".

Regional areas are bucking the trend, with total housing stock available for sale outside our big cities still sitting at 40% below pre-pandemic levels.

Motorists warned about rogue roos

Skippy may be an adorable icon but he's not so cute when he's just landed on your car's bonnet.

Insurer AAMI says winter is the peak claim period for collisions with animals, and it turns out kangaroos are the leading culprit for bingles, responsible for as many as 8000 car claims annually.

For the average suburban driver, hitting a roo may seem an unlikely event. But as ski lovers head to the mountains, now's the time to be on the lookout for Skippy - especially if you plan to take a break in Canberra, which AAMI says is the nation's animal collision hot spot.

AAMI is reminding motorists that comprehensive car cover may provide protection if you hit an animal, but Third Party Property Damage and Compulsory Third Party (CTP) Insurance will not cover damage to your vehicle as a result of an incident.

Hey kids, like to inherit the home loan?

Faced with a housing affordability crisis similar to our own, the UK government is considering introducing 50-year home loans to help more Brits buy a home.

The UK Times newspaper reports that these ultra-long term mortgages could be passed down from generation to generation, though it's hard to see adult kids getting excited about inheriting a home loan.

While a 50-year loan term can significantly inflate the overall interest cost of a loan, high property values are seeing home loan terms stretch out here in Australia.

The once standard 25-year term is creeping up to 30 years, and a number of lenders already offer 40-year home loans including AlphaBeta Money, BCU, G&C Mutual Bank, and Australian Mutual Bank.

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A former Chartered Accountant, Nicola Field has been a regular contributor to Money for 20 years, and writes on personal finance issues for some of Australia's largest financial institutions. She is the author of Investing in Your Child's Future and Baby or Bust, and has collaborated with Paul Clitheroe on a variety of projects including radio scripts, newspaper columns, and several books.