Are longer mortgage terms a good idea?
Lenders are in a position to stretch their mortgage terms in an effort to assist those first-time buyers who are struggling to climb on the property ladder.
A longer mortgage term could improve affordability for first time property buyers, but experts warn of the consequences of such deals.
Various UK lenders are able to offer deals for terms in excess of 25 years. Stretching terms enables home-owners to reduce their monthly repayments but the warning is this should only be done as a very last resort.
Some would-be buyers may consider such longer term deals as temporary, purely as a means to climb on the property ladder. Long term the intention maybe to remortgage when the time is right and funds are available to take on higher repayments.
However what if the time is never right and you are left paying a mortgage into retirement?
Most UK lenders offer their full mortgage range regardless of the term required, however some place age restrictions for deals over an extended term.
For young buyers there is less danger in accepting a longer term mortgage provided that you do not extend the term a second time.
Whatever your mortgage requirements contact Deal Direct today for a personalized quote.
