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Together extends maximum term on mortgages to 40 years

  • 21/09/2018
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Together extends maximum term on mortgages to 40 years
Together has extended the maximum term on its residential mortgage products to 40 years in an effort to help more first-time buyers get on the property ladder.


The extension will help bring down the monthly cost of borrowing for buyers struggling with high house prices and stricter affordability tests by spreading repayments over a longer term, the lender said.

Monthly searches by brokers using the Twenty7Tech system to source mortgages of 30 years-plus almost doubled between January 2017 and August 2018, accounting for more than a third of total searches last month.

Those looking for deals spread over 40 years have risen from 9,305 in January 2017 to 26,829 last month, according to sourcing system’s data.

Pete Ball, personal finance CEO at Together (pictured), said that there seems to be a significant shift in mortgage lenders going beyond the traditional 25-year or 30-year term, with lending over a longer period becoming the new normal.

He added: “A 40-year mortgage can offer borrowers greater flexibility, giving them more options when they come to finding finance for a new home. This could make this type of borrowing more attractive to many younger, first time buyers, particularly in more expensive housing markets around the UK.”

James Tucker, managing director of Twenty7Tec, said that the data have shown a consistent trend towards demand for longer term mortgages over the past year.

He added: “We expect that shift not only to continue, but to become a normal part of the market going forward.”

Bradley Moore, managing director of specialist distributer Brightstar Financial, said 40-year terms could mean the difference between younger clients continuing to rent or buying their own home.

He said: “There’s an ageing population who are working later in life and mortgages with terms of 35 or 40 years can be a great move for borrowers struggling with affordability.”

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