More borrowers taking longer mortgage terms

Aaron Strutt Image
Homebuyers are taking longer mortgage terms of up to 30 or 40 years to lower their monthly mortgage repayments. This increase has coincided with many of the lenders pulling out of the interest-only market. The Council of Mortgage Lenders says that the average mortgage term taken out by first-time buyers in the second quarter of this year was 27 years. The average borrower typically took a 24 year term, compared to a 22 year term two years ago. Nationwide Building Society and Halifax offer some of the most generous mortgage terms lasting up to 40 years. NatWest, Barclays and Santander will all allow a maximum term of 35 years.    October 10, 2013
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