Consumer group Choice had a lash at "risky" lending practices in a widely reported media release this week but it missed its mark. Choice took a swipe at a loan supposedly offering a loan-to-valuation ratio of 120 per cent without explaining that the home buyer's exposure was capped at 95 per cent.And it cautioned against mortgages with 40-year terms - a product offered only by three small lenders.Choice said in its release: "Just six years after poor lending practices contributed to a global financial crisis, three high-risk borrowing strategies are back on the market to tempt those struggling to raise the deposit for a home loan."Choice singled out Westpac subsidiary RAMS, which offers a loan called Fast Track. Under the terms of the loan, a home buyer can apply for a maximum LVR of 105 per cent. The borrower must provide a guaranteed amount from a family member sufficient to reduce the borrower's LVR to a maximum of 80 per cent (if the loan is not mortgage insured) or 95 per cent (mortgage insured).The guarantor's exposure cannot exceed 80 per cent of the value of their asset (including any existing debt and the guarantee amount).A Fast Track applicant can borrow up to 120 per cent where the loan purpose includes debt consolidation and renovation. In that case the guarantor needs to provide a guarantee amount that is sufficient to reduce the borrower's LVR to 85 per cent.A Westpac spokesperson said the majority of Fast Track loans had LVRs below 100 per cent.The loan has been in the market for 10 years.Comparison site Infochoice.com.au said there were three lenders offering mortgages with 40-year terms. They are BCU, Hunter United Credit Union and Teachers Mutual Bank.Choice said: "Taking a 40-year loan because you can't afford monthly repayments for a 30-year loan can backfire if your interest rate goes up again."The purpose of a loan with a term that is longer than usual is to lengthen the amortisation period, which reduces monthly repayments. Over the full term a borrower would pay more interest, but very few (if any) hold such a loan to term.As for rates going up, lenders are obliged to assess a borrower's capacity to repay the loan, which includes determining whether the borrower could handle monthly repayments under various higher rate scenarios. Offering a borrower a longer term does not, of itself, expose the borrower to more risk.