The lender noted that the longer term could be key to getting younger borrowers on the property ladder.
The deal is available on Danske Bank’s Carbon Neutral Mortgage in Great Britain and on all fixed rate and tracker mortgages in Northern Ireland, with certain terms and conditions.
For example, borrowers would need a maximum scheduled retirement age of 70. The lender said any mortgages that extend past retirement must be on a full capital and interest repayment basis. All mortgages must be repaid in full by the time an applicant reaches age 75.
Patrick Mullan (pictured), head of GB Mortgages at Danske Bank UK, said: “We know that people continue to face issues around affordability and we’re keen to play our part in helping them on their home-buying journey, particularly those looking to buy their first home.
Outside Northern Ireland, mortgages from Danske Bank UK are only available through brokers registered with Mortgage Advice Bureau and for homes with an Energy Performance Certificate of A-C in the East of England, South West and South East including London. The 40-year offer is not available on NI Co-Ownership schemes.
“Under the right customer circumstances, offering a 40-year term will be the key to getting on the property ladder, and our range of products and features, including the ability to overpay, can help customers to manage and reduce their mortgage term more effectively over the coming years.”
While 30-year mortgages are commonplace in countries such as the US, longer deals are comparatively rare in the UK.
