The Yorkshire ups age and maximum term limits

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The Yorkshire Building Society has increased the terms available on mortgage lending to a maximum of 40 years and extended its age limit to the age of 80.

The mutual said that in 2007, 48% of first-time buyer mortgages were on a typical 25 year term, yet by 2019 this proportion had dropped to 22%.

In contrast, longer term mortgages of between 25 and 35 years now account for 62% of mortgages, compared to 38% in 2007.

Charles Mungroo, senior mortgage manager at Yorkshire Building Society, said: “We continually review our products and policies to ensure they reflect the changing needs of our customers. Attitudes of first-time buyers are altering, with an increased demand for larger homes compared to the traditional ‘starter home’ that was once standard to get on the property ladder.

“Along with more purchases being made later in life and families having to juggle multiple financial commitments, there is a real demand in borrowers wanting to stretch their terms to make their monthly payments more affordable along with borrowing later into life.

“As a responsible lender, we need to make sure mortgages are affordable to customers across the term of their entire loan. By extending our maximum borrowing term to 40 years this allows customers like First Time Buyers to find an affordable home that meets their needs.”

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