Mortgage deals over a 30 year term rise in number.
Longer term mortgage deals have become increasing common as a method of cutting monthly repayment costs.
The Office for National Statistics recently released data revealing that currently around 25% of all of new mortgages approved are for a 30 year mortgage term or longer.
Some UK home-owners who have struggled financially since the credit crisis, have chosen a longer mortgage term as a means of cutting their monthly budget.
A longer term deal may perhaps result in reduced monthly repayments, however over the course of the mortgage home-owners are likely to find themselves paying far more back in interest payments.
In the short term 30 year term mortgage deals make monthly repayments lower, however in the long term thousands more may have to be paid back as the period is far longer than that of 20 or 25 years.
According to statistics, over two thirds of all mortgages taken out in the nineties were for a 25 year long term or less. Since then the number of mortgages for a 25 year term or less has fallen to around 30%.
Increasing a mortgage term increases long term mortgage costs. However home-owners are currently finding that this one of the easiest ways to reduce their monthly budget.
Before lengthening your mortgage term you are advised to contact Deal Direct for advice. We can work out whether such an action is in your best interest, and what effect this decision will have on both your monthly and long term mortgage costs.
For the most competitive mortgage deals available call Deal Direct today.
