UK Finance, a trade body representing 300 banking, credit and payment services firms, has reported that data from members has highlighted ever growing numbers of 35 year plus mortgages. This is due to:
The combination of the above 3 has forced first-time buyers in particular to look to longer term mortgages to be able to afford the mortgage payments. By way of example:
More importantly, the amount of additional interest paid over the mortgage term, makes it s must do to get your mortgage term down as soon as possible by remortgaging when/if rates fall or making overpayments to reduce the capital owed.
£128,093.81 more interest paid on a 40-year term compared to a 25-year term. We urge all borrowers needing a 40-year term to make overpayments all the time. Yes, you may be saving £153.60 pm initially but a staggeringly larger payment of interest warrants making cutbacks elsewhere to allow you to overpay when you can.