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Families could be offered mortgages of 50 years or more that can be passed between generations under plans being considered by Boris Johnson.

Lenders will be encouraged to let buyers borrow over terms lasting five decades or even longer so they can move into bigger homes.

Under the proposal, people would not be expected to finish paying off their mortgages during their lifetimes. Instead, they would be able to hand over their properties to their children – including the outstanding debt.

Ministers believe the plan will give people the chance of moving into their dream home as they will be able to take out larger loans.

Inheritance tax is only levied on the net value of the property so if it is mortgaged when the owner dies, the inheritance tax bill will be lower.