The financial press took a look at the pros and cons of longer mortgage terms this weekend, following research produced by Santander that suggested almost half of buyers would consider taking a mortgage over a period of 40 years.
As the Observer reported, the number of mortgage products available on a maximum 40-year term has increased significantly over the last 5 years, allowing borrowers (and in particular First Time Buyers) to meet lenders’ affordability criteria and enjoy lower monthly payments.
Experts in the Independent highlighted however that there are some drawbacks, namely the thousands of pounds in additional interest incurred when taking a mortgage over a much longer period of time. It’s important therefore for homeowners to take the opportunity to review and re-structure their mortgage as their circumstances change.
There was some good news for landlords this week, with the Times reporting that lenders have been cutting interest rates on their Buy to Let deals in a bid to attract more business. The sector has been hit by a number of tax increases and criteria changes, but recent data shows the number of deals available is the highest it’s been since the financial crash.
What the papers said about 40-year terms and Buy-to-Let rates