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Rise in popularity for 30+ year mortgage deals

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Mon 24 Aug 2015

Rise in popularity for 30+ year mortgage deals

 

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.