Clydesdale Bank increases maximum mortgage term to 40 years
Clydesdale Bank has extended its term to make mortgages more affordable for borrowers.
The maximum term will no longer be linked to the age of the applicant at application - it will simply be 40 years up to the age of 75. The maximum term for buy-to-let is still 25 years.
Clydesdale typically provides 4.5 times single and joint incomes and its change should positively impact affordability – particularly for younger and higher earning applicants with smaller deposits.
Aaron Strutt, product director at Trinity Financial, says: “There are a few lenders offering 40-year mortgage terms, including Halifax, Nationwide Building Society and Leeds Building Society. NatWest caps the term at 35 years and the maximum age is 70.
“If you are thinking about taking a longer mortgage term, it is important to understand that you will potentially pay a lot more in interest. If you can afford to make overpayments or reduce the term it is worth considering.”
Clydesdale mortgage term criteria
|
Residential (Capital repayment) |
40 years to finish before age 75* |
|
Residential (Interest-only) |
25 years to finish before age 70 (or anticipated retirement age if earlier) |
|
Buy-to-let |
25 years to finish before age 75* |
*If exceeding the customer's anticipated retirement age, Clydesdale Bank will require proof of retirement income.
For help to secure a longer term mortgage call Trinity on 020 7016 0790.
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