Glossary - Mortgage Term

Mortgage Term is the period over which a mortgage is repaid.
A mortgage term is the length of time that a loan is taken out over, most mortgages are taken over a 25 year term. There are other lengths of terms that you can have but they are subject to customer’s individual needs and your mortgage lender would need to consent to theses..

Example: Mortgage Terms
The length of mortgage terms varies.
A mortgage loan taken out on short term would mean that the repayments would be high, but it would also mean that you would pay less interest in total.
With a mortgage loan taken on a long term basis, the monthly repayments would be smaller easily manageable but the total interest would be higher.

Useful Tip
The size of repayments on a mortgage loan would rely on many things such as: The Bank of England base rates, lenders interest rates, which mortgage you require, the size of the mortgage loan, customer credit status.
If a customers is arranging finance then they should consider all the above as well as look at their ability to pay, if you are considering shortening any loan terms, only do so if you are certain positive circumstances are going to last.

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