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Traditionally mortgages were for 25 years, but nowadays many loans on offer have a standard maximum term of 40 years.

Longer-term mortgages have the advantage of lower monthly repayments, making them more affordable, especially if you are struggling to get onto the housing ladder. However, the downside is that by the end of the term, the amount of interest that you will have paid will be far greater because the loan is repaid over a longer period. You will also find that you build up equity, the amount of the property that you own, at a much slower rate if you have a 40-year loan.

Check the small print
If you take a longer loan, it makes sense to check that you can make overpayments. Being able to do this without penalties will enable you to pay more of the loan off if you receive a windfall or a pay rise. If your circumstances change over the years, it makes sense to speak to us. It might be worthwhile considering reducing your mortgage term so that you’ll pay less interest and become mortgage-free sooner.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.