Mortgage terms of up to 40 years becoming more popular.

Wednesday, April 24th, 2019

In recent years, some mortgage lenders have increased the term over which a mortgage can be taken to up to a maximum of 40 years, whilst others have also taken the decision to increase the maximum age by which a mortgage must be repaid.

Lower monthly payments, but at a price…

At first glance, it may seem like good news for those prospective homebuyers or home movers with restricted budgets, who want the property of their dreams and also want low monthly payments, but in reality, the total amount of interest that will be payable over the term of these longer mortgages will be much higher.

In our experience, one the main beneficiaries of these changes have been young first-time buyers with a restricted deposit who are at the start of their career. In this way, they get earlier access to the property ladder and can still afford the mortgage payments (albeit over a much longer term).

There are of course many other factors that mortgage brokers need to take into consideration when providing clients with professional advice regarding their mortgage options. 

Review your mortgage arrangements regularly

We also believe it is important for clients to review their circumstances and mortgage arrangements regularly to ensure that every opportunity is taken to reduce any remaining term, and thus the interest that is anticipated will be paid over that term. With that in mind, our experienced advisers here at Caboodle Finance keep in regular contact with their clients in order to help make sure that is not the case.

A professional mortgage broker

Sadly, not all mortgage lenders offer such flexibility, so for those individuals seeking specific mortgage requirements in what continues to be a very fluid and dynamic environment, the assistance of a professional mortgage broker can prove crucial, thereby potentially saving a significant amount of time and effort in locating the right product.

So, if you would like to get started with a no obligation confidential discussion, call our expert team here at Caboodle Finance of Sutton Coldfield, Birmingham today on 0121 308 9114 or, alternatively just complete our online enquiry form HERE to see how we may be able to help.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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