New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

More mortgage lenders offering extended-term mortgages, analysis shows
Tue, 20 Feb 2007
An increasing number of mortgage lenders are deciding to offer extended-term mortgages in a bid to attract first-time buyers, a new study indicates.

Research from financing website Moneyfacts.co.uk indicates that approximately 80 per cent of financial services providers now offer maximum mortgage terms beyond 25 years - traditionally seen as the standard mortgage duration.

More specifically, around 29 per cent of mortgage lenders now offer a maximum mortgage length of 30 years, while 27 per cent offer 40-year mortgages and more than four per cent offer 52-year mortgages.

Commenting on the figures, Julia Harris, financing analyst at Moneyfacts.co.uk, suggested that longer mortgages provide a manageable alternative to increased income multiples, interest-only mortgages and group mortgages for many first time buyers.

"Most lenders have adopted one relatively simple way to make the repayments more affordable by extending the maximum term of the loan - to anything up to 52 years," she said.

Explaining the attraction of arranging extended-term mortgages, she pointed out that monthly repayments on these deals are typically set at a "more affordable level".

Last year, financial services provider Abbey caused controversy when it announced that it would start to offer prospective homebuyers a mortgage valued at five times the applicant's income.

Link to this page

Copy and Paste the following HTML into your page.

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.
Browse

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.
Sign the petition

Free mortgage quoteFree Mortgage Quote

Apply Here

Mortgages in Scotland Mortgages in Scotland

Read More

Equity releaseEquity Release

  • Unlock equity in your home.
Apply Here

Switching mortgagesSwitching Mortgages

Read More

Home reversion plansHome Reversion Plans

Apply Here

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?
Apply Here

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation
Apply Now

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover
Apply Now

Mortgage Newsletter