Searching for the ideal mortgage can be overwhelming. YesCanDo Money is here to help you with this daunting task! In the UK, mortgages are commonly set to a 25-year term. However, it’s possible to find extended terms if needed – and we’ll show you how in our comprehensive guide on maximum mortgage terms! We discuss what options are available, the potential implications of longer terms, ways to extend your existing mortgage, and more. Allow us at YesCanDo Money to assist you so that you can make an informed decision when choosing a longer term for your mortgage.
What’s the longest mortgage term available in the UK?
When it comes to residential mortgages, the maximum term length is currently 40 years. The average UK mortgage term typically lasts 25 years and some mortgage lenders may hesitate when agreeing to longer-term mortgages; The majority of UK mortgage lenders will consider up to a 35-year term – and an exclusive few that stretch all the way out to 40!
Related reading: 2023 sees a surge in 35-Year and 40 Year Mortgage Terms
Why get a longer term mortgage?
For many individuals, making their monthly mortgage repayments more manageable is a top priority. One way to accomplish lower monthly payments is by selecting longer-term mortgages. By spreading out the costs over 25 years or longer, your monthly repayments will be lower compared to shorter terms. This can provide great benefits for those who wish to keep their expenses down while allowing extra funds available for home improvements and other financial commitments. With an elongated repayment mortgage, you can budget in comfortable increments without sacrificing any of your dreams!
Nevertheless, it is essential to recognise that a longer loan term mortgage deal frequently costs more over time. This occurs because you will need to make both interest and capital payments for the entirety of the duration of your mortgage; even though lower monthly repayments may result in lower monthly repayments each month, an additional 5 -15 years’ worth of them could add up quickly. If you are unsure how choosing the maximum mortgage term might impact monthly repayment, our repayment calculator can be used as a guide so you can compare different mortgage terms!
Mortgage Repayment Calculator
Calculate your monthly repayments and overall cost with ease using our convenient mortgage repayment calculator. All you need to do is input the amount borrowed, interest rate, and loan term length – then let us take care of the rest! Get an accurate estimate of how much your mortgage monthly payments will cost each month so that you can budget accordingly.
How to get a longer term mortgage
When looking for a mortgage, you can request to extend the term length past 25 years. Sadly, not all mortgage providers offer this option which is why it’s essential to find the right lender or work with a mortgage broker. Being declined due to an unwillingness of some providers can leave marks on your credit report and harm any future finance applications. A trustworthy mortgage broker will help ensure that you get access to longer-term agreements while avoiding unpleasant surprises along the way.
How a mortgage broker can help you
If you’re looking for a longer-term mortgage, then hiring a skilled mortgage broker is an ideal option. Not only will they search through the whole market for a mortgage deal that matches your individual needs and age group, but also explain all of its implications as well as negotiate with lenders to get you the most competitive rates with the lowest monthly repayments. Furthermore, their expertise in guiding you throughout the application process coupled with helping out with paperwork makes them invaluable!
How age affects your term
If you’re looking to secure a longer-term mortgage, the eligibility criteria are much similar to that of a standard term. However, certain lenders may pay closer attention to your age due to the fact that such an agreement will extend into retirement years when most individuals are receiving lower incomes. Thus, they need assurance that you’ll be able to continue making payments into retirement and that you have the means to commit to the monthly repayments.
It’s worth noting that a few lenders may not provide you with a mortgage if the term surpasses your 70th birthday, while the majority of them will not lend over the age of 75. Fortunately, there are other mortgage providers who will gladly extend to a longer period past your 80th or 90th-year mark and some even lend without any age restrictions depending on specific conditions and your personal circumstances.
Learn more: What is the maximum age for a mortgage?
Extending the length of an existing mortgage
With refinancing or remortgaging, you have the potential to extend your existing mortgage’s term. However, it is ultimately up to the lender if they deem you eligible for a longer loan duration–they’ll re-evaluate your affordability and eligibility.
When extending your mortgage term, it’s a smart move to reach out to a broker first. They can search the entire market and find you the best mortgage deal possible. However, if there’s nothing suitable on offer from other lenders, then getting in touch with your current lender is also worth considering.
Is it a good idea to extend?
For certain individuals, agreeing to a term extension could be absolutely worth it. For instance, if you’ve had to take a pay cut and are having trouble keeping up with your mortgage payments each month, this option could help reduce your monthly repayments while making debt more manageable. Additionally, an extension might also provide greater financial flexibility when saving or searching for extra disposable income in the near future.
It is essential to contemplate the complete cost, as financing your mortgage over a longer period will lead to more interest payments in total. Additionally, certain lenders may permit you to alter your term back down if something changes or if it appears sensible for you later on. It’s important to carefully weigh both sides and guarantee that it is the correct decision for your financial circumstances.
Discover the true cost of extending your mortgage term >
How much will it cost?
If you are looking to extend the term of your mortgage, it is important to be aware that there may be remortgage fees incurred. Different lenders and people might have varying costs associated with this process but our guide on remortgage costs and fees can provide you with a thorough assessment of all potential expenses related to remortgaging.
Extending an interest-only mortgage
Struggling to make payments on your interest-only mortgage? It may be possible for you to extend the term of your interest-only mortgage however this will not result in lower monthly repayments. As the monthly payments will stay exactly the same the main reason to extend the term would be if you are coming to the end of the mortgage and your personal circumstances mean you don’t want to sell or move home yet or your repayment vehicle is not sufficient to repay the mortgage yet.
Maximum term on a buy-to-let mortgage
If you’re looking for a buy-to-let mortgage, the most common terms range from 25 to 35 years. In recent years lenders have relaxed their lending criteria around the maximum age and it is very possible to have a longer term stretching well into the retirement age.
Are you struggling to find the right mortgage for your needs? At YesCanDo Money, we’ve got your back! Our team of experienced mortgage advisers is dedicated to helping out with everything from extending an existing loan to finding a long-term solution. Buy-to-let mortgages are one of our specialities – don’t hesitate to reach out if you need any assistance in this area. With us on your side, achieving financial stability and independence has never been easier!
How a broker can help with your mortgage term
If you are looking to secure a longer-term mortgage or extend your existing one, it’s wise to get in touch with an experienced mortgage broker. Not all lenders have mortgages of up to thirty years and some age restrictions that might not be right for you. However, by selecting the perfect broker, these issues will become obsolete and they can find you the lender that is ideal for your situation without any hassle.
YesCanDo Money are here to help (we’re fee-free)
YesCanDo Money offers you an expert mortgage service without any fees. We’ll connect you with one of our dedicated, fee-free expert advisors to review your goals and needs. Call us now at 033 0088 4407 or send in an enquiry with the form below so that we can arrange for you to start sorting your mortgage out today!
FAQs
Is it easy to extend a mortgage term?
By just making a telephone call to your current lender, chances are you'll get approved for an extension. Nevertheless, this is the ideal moment for you to discover if there's any other better deal with another lender. Employing a mortgage broker who can examine all options in the market will save not only time but effort as well since they have the expertise in accessible alternatives out there. If they locate something more suitable that adds up to your needs, then they will assist and guide you throughout the process!
What is the maximum term on a Help to Buy mortgage?
When going through the Help to Buy scheme, you can rest assured that your mortgage won't exceed 35 years - an increase from 25 years since it was revised by the government in 2019. If you're still uncertain how this works, don't worry! Our comprehensive guide about Help to Buy is here to answer all of your questions regarding mortgages and make sure everything goes smoothly for you.
The Help to Buy equity loan scheme was established by the government in order to make it easier for first-time buyers to purchase a home with just a 5% deposit. However, sadly this incredible opportunity is no longer available as applications closed on October 2022.
Can I extend a fixed-rate mortgage?
If you're considering fixing your mortgage rate, it's important to be aware that some lenders may impose exit fees if switching mortgages. But don't worry; certain banks might offer a longer-term loan of the same type without charging any additional costs. So definitely take time for research and comparison shopping before making your decision!
Can I extend my mortgage term beyond my 65th birthday?
Even though your lender needs assurance that you can keep up with mortgage payments after a certain age, whether it be through pension income or occupation, the majority of lenders usually have restrictions in place. Typically this is between 70 and 80 years old as their maximum age requirement at the end of term. However, there are some who allow individuals older than that to attain funding via mortgages; our knowledgeable advisors know exactly who those lenders are! So get in touch so you don't end paying higher monthly payments and more interest than you need to
