The proportion of homebuyers searching for mortgages with terms of 30 years or more has risen 8% to 21% over the past year.
Research by Mortgage Advice Bureau, using over 250,000 monthly product searches via comparison websites, shows terms of 25-29 years remained the most popular in Q2. However, at 63% this is a significant fall from 77% a year earlier.
Just 12% of homebuyers searched for terms of between 15 and 24 years while 4% of borrowers searched for mortgages with terms under 15 years in Q2.
The most in-demand mortgage term for re-mortgage borrowers was also 25-29 years in Q2, at 76 per cent. However, like homebuyers, this is a less popular option that a year earlier, when 85% opted for a term this length.
The second most popular term length among re-mortgage borrowers was 15 to 24 years, at 13 per cent, followed by under 15 years and 30 plus at 8% and 2% respectively.
With a myriad of different schemes available it is strongly recommended that potential borrowers take professional advice. Our mortgage advisers will be pleased to assist.