MORE than half of mortgages on the market can now be taken out for up to 40 years, after a surge in longer loan availability.
Traditionally, homeowners have been able to stretch repayments to a maximum of 25 years, but 51 per cent of residential mortgage products currently have a standard upper limit of four decades.
Getty – Contributor Over 50 per cent of residential mortgages now offer a 40-year maximum term
That marks a 40 per cent rise from just five years ago, when the proportion was just over a third (36 per cent).
It comes as people are working longer and may also have larger mortgage debts, following house price surges in recent years.
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Darren Cook, of advice site Moneyfacts.co.uk, which carried out the analysis, said that by extending a mortgage, borrowers may be looking to reduce their monthly repayments.
However, he warned this could mean a far higher bill overall, as well as being stuck paying off the loan well into retirement.
For example, someone borrowing £200,000 over 25 years at a rate of 2.5 per cent may pay £69,169 in interest but over 40 years, total interest could be £116,588 — an extra £47,419.
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