HSBC has changed its maximum mortgage term to 40 years for residential and buy-to-let customers.
The launch will be divided across two dates. It will be available through mortgage brokers from tomorrow and customers making direct applications will be able to apply from 13 September.
The term will be an option for residential capital repayment and buy-to-let mortgages.
Interest-only residential applications remain capped at a 25-year maximum term. This includes part and part mortgages.
Second home applications and additional borrowing also qualify for the maximum mortgage term of 40 years.
Andrew Matson, head of mortgages at HSBC UK, said: “We know that home ownership is a key life ambition for many people, but affordability can be an issue. We are delighted to introduce our first ever 40-year mortgage term to our customers. This move underscores our commitment to supporting aspiring homeowners in their journey onto the housing ladder.
“By extending the mortgage term we aim to help make mortgages more manageable with lower monthly repayments and homeownership a reality for our customers.”
According to Criteria Brain, maximum mortgage terms range from 35 to 50 years for residential applications, with the majority falling at the 40-year mark.
Of the lenders listed, 52 offer a 40-year maximum term, 17 offer 35 years, one offers 50 years and another offers 41 years.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.