Extended mortgage terms dominate the market |
Over two-thirds of residential mortgages offer a term of 40 years. Traditionally, mortgages would last for a 25 year term. But in a higher interest rate environment, more lenders are increasing this part of their deals. According to Moneyfacts’ data, about 68% of residential mortgages now accommodate terms up to 40 years, up from the 57% seen this time last year. Increasing your mortgage term does mean you’ll pay less on your monthly repayments, and it could make it easier for first-time buyers to get a foot on the property ladder. However, it does mean your overall interest will rise. Read the full story |
This sounds like it means that 68% of lenders provide 40 year mortgages as opposed to 68% of outstanding mortgages being 40 year terms? That being the case, this assertion may not hold up:According to Moneyfacts’ data, 68% of the residential mortgage market accommodates a maximum term of 40 years.
BTW the link above seems to be going through some odd redirect so this is the direct link:40 Year Terms dominates UK Market
That is not in the current version of the article."more lenders are increasing this part of their deals"
Exactly.I am guessing, and it's only a guess, that it means that the option is there if people want to take it.
Because your thread title and the (original?) article headline clearly assert something else...It is clear that "more lenders are increasing this part of their deals" and I don't see how you two could see that this was asserting something else.
40 Year Terms dominates UK Market - just saying
Almost like clickbait - and switch.
Extended mortgage terms dominate the market
Clearly most Moneyfacts readers would have known what the title and article meant.Because your thread title and the (original?) article headline clearly assert something else...
Almost like clickbait - and switch.
I was slightly bemused when the article linked seemed to say something very different to what the thread and (original?) article title says.I am slightly bemused - the opening part of my post was taken from Moneyfacts and the link was attached.
You did say that the market was "dominated" by 40 year term mortgages.I had no doubt at all what it meant and I never reached the conclusion that it was all mortgages in UK.
?DIRT is a final liability tax, meaning that the financial institution deducts the tax before they pay you the interest. You can
Nothing clear about that at all.Clearly most Moneyfacts readers would have known what the title and article meant.
It was clear and you are missing the whole point.I was slightly bemused when the article linked seemed to say something very different to what the thread and (original?) article title says.
You did say that the market was "dominated" by 40 year term mortgages.
?
Nothing clear about that at all.
Is it a wonder people get frustrated with the tone of some of the replies.
During the full year 2022, 17% of first time buyers in the UK took out a mortgage with a term greater than 35 years.
Sorry, it won't happen again.I don't like your tone. Ruining a perfectly good thread with hard facts. How dare you!
Just curious - are there stats available on the original contracted term of all outstanding mortgages by any chance?There are c.340 mortgage lenders in the UK market. 40 year mortgages have always been available.
During the full year 2022, 17% of first time buyers in the UK took out a mortgage with a term greater than 35 years. The average term for all FTBs was 31 years.
Not for all outstanding, or at least not that I see. The data tends to be compiled annually on all drawdowns that year, so you can see trends over time. I don't spend much time looking at UK data, so there might be more available.Just curious - are there stats available on the original contracted term of all outstanding mortgages by any chance?
And the Guardian Sub-Editor has translated that into a headline of:As it happens, there's an article in the Guardian on this topic yesterday. Latest data from Experian shows quarter of buyers who are under the age of 30 are selecting a term of 35 years or longer.
One in four new UK homeowners opt for ‘marathon mortgages’ to cut payments
Buyers under 29 choosing at least 35-year repayment terms to bridge gap between rising living costs and high asking prices, says Experianwww.theguardian.com
Ah yes, but even they stopped far short of using the word "dominates".And the Guardian Sub-Editor has translated that into a headline of:
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