40 year mortgages have been increasing in popularity over the last 5 years, with the number available increasing by 13% since 2014 according to Moneyfacts.
What are the benefits of a 40 year mortgage?
More and more first time buyers are opting for a 40-year mortgage at the outset as a more affordable means of getting on the housing ladder. The average* monthly repayment on a 40-year term mortgage is around £150 lower compared to a 25-year term mortgage with the same loan size and interest rate. It does mean they would pay back more interest, however.
This is particularly prevalent in and around London and the South East, where property prices have increased rapidly.
For older clients in later life, a 40-year interest only term from age 75 would take the borrower to the end of their life, creating an affordable retirement option where the outstanding loan is repaid from the sale of the property. Because we have no max age limit, we’re able to provide this option where the affordability criteria is met.
Does Ipswich Building Society offer 40 year term mortgages?
All of our mortgages are available up to a 40 year term (except BTL – 25 years) and we have no maximum age limit – if your client is seeking a longer term on their mortgage please give us a call on 0330 123 1073.
