You are here: Home - News -

Pool of resi mortgages offering 40-year terms grows to 57 per cent

by:
  • 14/10/2019
  • 0
Pool of resi mortgages offering 40-year terms grows to 57 per cent
The number of 40-year mortgage products on the market has risen by 15 per cent to 2,782, up from 2,412 at this time last year, Moneyfacts has shown.

 

Yorkshire Building Society last week extended its maximum mortgage term from 35 to 40 years and increased the borrower age limit at end of term from 75 to 80 years. 

Research by Moneyfacts.co.uk showed that 57.01 per cent of residential mortgages were now available up to 40 years, a rise from 55.55 at this point in 2018.

The number of products with a maximum term of 30 years jumped by 43 per cent to 195, up from 136. And the count of available 25-year mortgage products rose 13 per cent to 168, up from 149. 

The pool of products with a maximum 35-year term shrank by five per cent to 1,645, down from 1,735 last October.

Additionally, the research showed that 83 per cent of residential mortgages offered a maximum age at end-of-term of 70 years or above. 

Darren Cook, finance expert at Moneyfacts.co.uk, said: “It appears that mortgage providers are permitting extended maximum mortgage terms of up to 40 years in conjunction with extending the maximum age that a borrower may be at the end of a mortgage. 

“A longer-term mortgage may reduce monthly repayments, however, the additional interest that accumulates over an extended mortgage term could be considerable.  

“An extended mortgage term may go beyond pension age, so it is imperative that these borrowers consider their options and attempt to make provisions if their personal circumstances change.” 

There are 0 Comment(s)

You may also be interested in

Read previous post:
The British New Homes Mortgage Senate in pictures

The British New Homes Senate brought together the key players throughout the new build industry.

Close