How long does a mortgage last?

There is no right length (term) to a mortgage. The standard term is around 25 years, and most of us tend to have a mortgage throughout our working lifetime. With the large sums involved, this spreads the cost and makes your monthly payments more manageable.

However, you can choose a different term if it suits you and the lender agrees that you can afford it. If you can afford a shorter term you may have higher monthly payments but pay less in total (see table below). With a longer term, you may pay less each month but more in total.

Ask for ‘Key facts about this mortgage’ documents showing different mortgage terms and use Section 5 to compare the total cost of a mortgage over different terms. Try not to make financial commitments that go past the age you retire unless you're sure you'll be able to afford the payments.

Example of how the term alters the cost of a repayment mortgage if interest is 6% a year.


In Summary

1. Remember that a mortgage should fit comfortably with your earnings and your commitments.

2. Don't take out a mortgage that runs past your retirement, if you're not certain you will be able to afford it.

Choosing a Mortgage Broker

Choosing a mortgage has never been easy, but in recent years the market has exploded. Gone are the days when the major decision you had to make was between a variable and a fixed rate. Now, every lender seems to have a number of different product, from offset mortgages that set your savings interest against your mortgage interest, to self-certification mortgages for the self-employed, cash backs, discounted rates, fixed rates, stepped fixed rates, etc. etc. etc.

Making sense of all the different options and working out which is best for you is where Hanson Wealth Management comes in.

A mortgage broker is basically a financial adviser with specialist knowledge of the mortgage market. They have access to special mortgage deals that won't be available directly from the lender and so should be able to get a better deal than a consumer doing their own mortgage research. They will also save you a great deal of time and energy.

We have a specialist department that takes enquiries by telephone or over the internet. An authorised adviser will then telephone to ask a number of questions (which takes about 15 minutes) to obtain more detailed information on your requirements and answer any questions that you may have. The research team will then search the whole of the market using our state of the art technology to find the most appropriate deals for you. If you are happy with the quotations provided then we can handle your mortgage from application through to completion. We can arrange face to face meetings with advisors or we can take care of everything using e-mail and telephone. The choice is yours.

For more information, you may wish to contact an IFA (Independent Financial Adviser) who will be able to take you through the options available to you and help you find a deal to suit your needs. Hanson Wealth Management would be happy to talk you through your options, you can contact us on 0800 881 8085 or alternatively you can leave your details on the application form here.