Home loans, different ways

Business Daily

BBC

News, Business

4.4 • 796 Ratings

🗓️ 15 July 2025

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

Mortgages - or home loans - are commonly taken out in countries with high homeownership rates. In some parts of the world, the majority of people own their homes outright, but in the US, parts of western Europe and the UK, most buyers require a mortgage to get on the property ladder.

Home loans are sensitive to interest rates, which have been falling in many major economies. We hear how that’s changing mortgage lengths and styles in different jurisdictions.

We hear how the Dutch mortgage is becoming popular elsewhere, and what we can learn from each country’s approach.

If you would like to get in touch with the show, please email: [email protected]

Presented and produced by Rick Kelsey

(Picture: Happy woman and man sitting on the floor with coffee cups, next to boxes and cats, in their new home. Credit: Getty Images)

Transcript

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0:00.0	On Business Daily today, we're moving home, talking about mortgages, the chunk of money that is often our biggest monthly spend.
0:13.9	I am, you know, coming up to 30, I'm thinking about the future, thinking about, you know, having kids, getting married, all big expenses.
0:22.6	So it would be really nice to have a little bit more kind of financial security for kind of five to ten years rather than having to think in two-year chunks.
0:31.5	Mortgages make up around half of a family's regular payments in places like the US, the UK and Spain.
0:38.4	Sometimes people take one out to cover the whole of their new homes cost.
0:43.6	We had over 100% plus mortgages during the financial crash and they didn't do very well for obvious reasons.
0:49.8	So I think as time moves on, needs change.
0:53.4	And we're already seeing that now.
0:54.8	We need more innovation in the market.
0:56.5	We need more flexibility to protect borrowers.
0:59.1	When the cost of mortgage borrowing goes up, it has a massive impact on house prices and building.
1:05.0	As house prices go up, people are stretching more and more to buy pricier and pricier houses so they have to take out
1:12.6	bigger mortgages and the mortgage payment you have to make depends on the interest rate but also
1:18.7	on the length of time that you're going to take to pay it off they like certainty they like peace of
1:24.1	mind and one of the significant advantages of a longer-term product,
1:28.6	people can borrow a little bit more and actually are able to buy that house that they really want.
1:34.1	This is Business Daily with Rick Kelsey as global interest rates go on a downward trend.
1:39.9	We're looking at what we can learn from different countries' mortgage styles to help us pick our own.
1:49.0	Moving home might be one of the most hectic but happiest days of your life.
1:54.0	Come on Harold, let's go!
1:56.0	The mortgage is the biggest fixed monthly cost people pay in most economically advanced countries.
2:05.1	When we pick one, it's a commitment that could last 25 or even 35 years.
	...

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