Top Mortgage News

Derin Clark

Derin Clark

Online Reporter
Published: 26/06/2019

The number of residential mortgages available for a maximum term of up to 40 years has increased by 13.44% over the last five years, according to research from  

In June there were 1,217 mortgages available at a maximum term of 40 years, while today this has increased to 2,744. For borrowers, longer mortgage terms mean they can benefit from being able to spread the cost of the loan over a longer period of time, which reduces the payments each month. However, borrowers should be aware that taking a mortgage over a longer term increases the total amount of interest they will have to pay back overall.

Products at maximum mortgage term (residential mortgages only) 

Max term 40 years 35 years 30 years 25 years
Jun-14 1,217 (41.54%) 1,125 (38.40%) 392 (13.38%) 196 (6.69%)
Mar-19 2,604 (50.89%) 2,221 (43.40%) 140 (2.74%) 152 (2.97%)
Today 2,744 (54.98%) 1,921 (38.49%) 165 (3.31%) 161 (3.23%)

According to the Office for National Statistics’ Housing Affordability in England and Wales, in 2018 the average house price was 7.8 higher than the annual earnings of full-time workers in England and Wales. This gap, along with the requirements of affordability tests, means that some borrowers now need a longer term to have a manageable monthly mortgage payment. While an easier monthly payment is useful, borrowers should know that the additional interest that accumulates over time could be considerable.

For example, a £200,000 repayment mortgage at a rate of 2.50% over 25 years equates to a monthly repayment of £897.23 and total interest payable would be £69,169 over the term. However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56 but increase the total interest to be paid to £116,588, resulting in an additional £47,419 in interest.

This week the mortgage charts remained highly competitive, with attractive rates being found across the charts. The best rates on offer were from discounted variable mortgages, however those looking for a fixed term rate could still find low rates on offer. 

Over half (58%) of young adults surveyed by the mortgage broker, Trussle, revealed that they still live with their parents as financial circumstances prevent them from moving out and saving for a house deposit or being able to afford to live on their own.

Half (50%) of those aged 18-34 Trussle surveyed said they were living with their parents in order to save for house deposit, and 59% revealed the process of saving to get onto the housing ladder was causing them stress. Not only this, but 36% of this age bracket admitted that they lived with their parents because they simply could not afford to live alone.

At a staggering 81%, the North East of England had the highest number of young adults still living with their parents, while London also had a high number at 74%. Meanwhile, Yorkshire and Humber had the lowest numbers, with just 22% of under-35s living with their parents.

For many younger people they are the lender of first choice for a range of needs, but new research by Legal & General and Cebr has highlighted just how much we depend on the bank of mum and dad – particularly when it comes to getting on the property ladder. New figures have revealed that bank of mum and dad is on course to contribute an average of £24,100 to help their children into their first house – some £6,000 more than the 2018 figure of £18,000.

The jump in loan sizes has increased total lending for the bank of mum and dad by 10% this year – up to £6.3bn from £5.7bn in 2018 – making bank of mum and dad the 11th largest mortgage lender in the UK.

Money from parents will continue to support thousands of buyers across the country in 2019 – being involved in more than a quarter of a million property purchases. This amounts to nearly one in five transactions in the UK mortgage market. In total, the bank of mum and dad will help buyers to purchase property worth nearly £70bn this year. In some parts of the UK, there has been an even bigger rise in contributions from family or friends. In the North West, the average bank of mum and dad ‘loan’ has nearly doubled from £12,900 to more than £24,000, while the South West saw the average contribution rise by over £10,000 to £29,700.

This shift in loan size could be because parent lenders are supporting family and friends to purchase larger properties. Three-bedroom houses or flats were the most commonly purchased properties in 2019 (44%), and well over a third (38%) have helped family or friends to buy a two-bedroom property. In fact, 15% of lenders were even helping loved ones to purchase properties with four or more bedrooms.

This year’s findings also suggest that the bank of mum and dad is playing a more complex role in the housing market than previously thought. Millennials (those aged 35 and under) continue to rely on mum and dad the most, with 62% needing financial support from their parents or other family members and friends. However, loans from mum and dad are helping more than just young first-time buyers. Findings show that more than a fifth of people aged 45-54 have received financial assistance from elderly parents to purchase their latest property, while around 7% of over-55s have also received help from family or friends to buy their most recent home. This support for older buyers is expected to double, with 14% of Britain’s over-55s expecting assistance from their parents for a future house purchase.

Of course, not everyone has parents who are able to assist with a house purchase for one reason or another. For those people, the Government’s various Help to Buy schemes have been established across the UK. The help on offer takes the form of an equity loan guaranteed to be interest-free for the first five years. However, buyers in these schemes are restricted to the purchase of new build houses. Indeed, some recent news stories have suggested that many people who used the Help to Buy schemes could have bought a house without the assistance of this scheme – drawing the question of who these schemes are helping in reality.

Find out more with our Help to Buy equity loan guide and see our comparison chart for the best first-time buyer mortgages.


This week the best rate in both the moving home and remortgage charts was 1.26% discounted variable for two years. For first-time buyers the best rate on offer was also a variable rate of 2.54% discounted variable for two-years. While variable rates were the most competitive rates across all the charts, there were still good deals that could be found within the fixed rate charts across all mortgage types.

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