/ Author: SPF

SPF is now able to offer mortgages with 40 year terms – great news for first-time buyers and anyone else who’ll be reaching pensionable age in up to 40 years.

There are two main advantages to stretching out the mortgage term:

The first is affordability – extending the amount of time you have to pay back the funds means you may be able to qualify for a larger amount, putting that dream home within your reach.

The other advantage is that you can reduce your monthly repayments as they are spread out over a longer timeframe.

The examples below show the difference on a £400,000 mortgage repayment:

25 years, 85% LTV, 2.89%, £1,872 per month
40 years, 85% LTV, 2.89%, £1,406 per month

25 years, 90% LTV, 3.24%, £1,945 per month
40 years, 90% LTV, 3.24%, £1,487 per month

Though you will pay more interest overall, extending your mortgage term means you can reduce monthly payments when you may need it the most.

40 year term mortgages have been around in the UK for some time and have become increasingly popular. Data from Moneyfacts shows that they now make up 51% of the overall mortgage market, up from 36% five years ago. This is the first time they have been available in the Channel Islands and we’re pleased to be able to add them to the wide range of products we can offer.

To find our more email [email protected] or call us on 01481 715234

Rates correct as at 21/10/2019