The building society that lets you take a 40-year mortgage

The building society that lets you take a 40-year mortgage. Pay Off Mortgage Early or Invest? #AskTheMoneyGuy

The building society that lets you take a 40-year mortgage video duration 8 Minute(s) 5 Second(s), published by News of the present world on 10 09 2017 - 16:43:04.

National mortgage lender Teachers Building Society has extended its maximum mortgage term from 35 years to 40 years to help those on lower incomes afford HOW TO PAY OFF MORTGAGE EARLY UK
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Learn EXACTLY how we paid off our mortgage in 7 years :) ♥ Start your journey to Financial Independence and Should you pay off your mortgage early or invest? The Money Guy Show has the answer to your home loan question! Use the hashtag #AskTheMoneyGuy on .

National mortgage lender Teachers Building Society has extended its maximum mortgage term from 35 years to 40 years to help those on lower incomes afford to buy.Historically, borrowers typically took a mortgage over a 25-year term but as house prices have risen steadily and wage growth has failed to keep pace, more and more borrowers are opting to spread their repayments over a longer time frame.This has the advantage of reducing monthly repayments, even on bigger mortgages, but it does mean that borrowers pay far more interest on the principal balance as it takes years longer to pay off.Andy Yates from Teachers Building Society said: 'Increasing the maximum term to 40 years will help bring down the monthly mortgage costs for people buying a home.'With high house prices and an increasing cost of living, saving money on monthly mortgage payments remains important to people buying a home.'First things first, Teachers Building Society restricts who it will lend to - you're only eligible for a mortgage from it if you're a teacher or you work in education in England or Wales.They will consider newly qualified teachers, teachers on supply, contract teachers and those teaching or working in further education.Because the lender is based in the South West, it will also lend to local residents in Dorset, Hampshire and Wiltshire - even where they don't work in education.The 40-year term is applicable on all of the society's mortgages and borrowers must earn a minimum annual salary of £13,000 or, if self-employed, have two years or more of tax years' accounts or SA302s to be considered.The lender's best buy rate is 2.39 per cent on a two-year fixed rate up to 80 per cent loan-to-value with a £899 fee plus a £99 application fee.Taken over 25 years, a £150,000 on these terms would have monthly repayments of £665 and a total repayment of £200,293.If borrowers opt to take the same deal over the full 40-year term, monthly repayments drop to £486 but the overall repayment total rises to £233,991.How does it compare?Teachers is not the only lender to go up to a maximum term of 40 years - both Halifax and Nationwide will let borrowers extend their mortgage over this period within their normal criteria rules.Borrowers aren't charged more for the longer term, so rates from Teachers should be compared to these.Halifax currently offers a two-year fixed rate at 1.46 per cent with a £995 fee for borrowers with between 15 and 25 per cent equity or deposit to put in.Over 25 years on the same mortgage as above, monthly repayments would be £597 and the overall repayment £180,122.Taken over 40 years, monthly repayments are £413 and the total repayment over the full term is £199,123. That's almost £35,000 less than the Teachers deal.Nationwide's most comparable deal is a two-year fixed rate at 1.44 per cent with a £999 fee. On the same mortgage as above, over 25 years monthly repayments would be £596 and the total repayable would be £179,705.Over 40 years, monthly repayments wo

Source: http://www.dailymail.co.uk/money/mortgageshome/article-4865048/Teachers-BS-let-40-year-mortgage.html