A third of lenders offer 40-year-plus mortgages
Published On 8 November 2006
Almost a third of lenders are now offering mortgages that allow consumers to borrow for 40 years or more, it has been revealed.Research by MoneyExpert.com has found that 30 per cent of lenders are tendering such deals, with Tesco Personal Finance leading the way with a mortgage that can be repaid over a staggering 52 years if required.
The figures are evidence of the growing flexibility of the mortgage market, as lenders realise that increasing numbers of people are looking to buy up their own place despite house prices continuing to rise.
Sean Gardner, chief executive at MoneyExpert.com, commented: "It can be a good idea to spread payments over a longer period of time if that makes monthly repayments more affordable."
"However borrowers need to be aware that the longer they have a mortgage for the more they will pay in interest."
The majority of lenders insist that customers must repay the loan by the time they have reached the age of 65.
With house prices climbing to an average of £211,453 in September, according to the Land Registry, increasing numbers of house buyers could be opting for longer-term mortgages.
