We’re currently working on our BTL calculator in light of our recent criteria changes. We hope to have this back up and running soon but if you need any help in the meantime, please contact your BDM or the Helpdesk on 0330 123 1073.

How a 40-year term mortgage may be able to help your client

Written by Ipswich Building Society

28 Jun 2019


First Time Buyers, Later life, Term

2 min read

40 year mortgages have been increasing in popularity over the last 5 years, with the number available increasing by 13% since 2014 according to Moneyfacts.

What are the benefits of a 40 year mortgage?

More and more first time buyers are opting for a 40-year mortgage at the outset as a more affordable means of getting on the housing ladder. The average* monthly repayment on a 40-year term mortgage is around £150 lower compared to a 25-year term mortgage with the same loan size and interest rate. It does mean they would pay back more interest, however.

This is particularly prevalent in and around London and the South East, where property prices have increased rapidly.

For older clients in later life, a 40-year interest only term from age 75 would take the borrower to the end of their life, creating an affordable retirement option where the outstanding loan is repaid from the sale of the property. Because we have no max age limit, we’re able to provide this option where the affordability criteria is met.

Does Ipswich Building Society offer 40 year term mortgages?

All of our mortgages are available up to a 40 year term (except BTL – 25 years) and we have no maximum age limit – if your client is seeking a longer term on their mortgage please give us a call on 0330 123 1073.

This article was published under our previous name of Ipswich Building Society. We changed our name in 2021 – get in touch if you have any questions.

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