40 Year Mortgages - Boom or Burden?
Longer-term mortgages mean lower monthly repayments, making them more affordable. However, the downside is that by the end of the term, the amount of interest paid will be far greater because the loan is repaid over a longer period. You will also find that you build equity, the amount of the property that you own, at a much slower rate if you choose a 40-year-loan.
If you take a longer loan, it makes sense to check that you can make overpayments. Being able to do this without penalties will enable you to pay more of the loan off if you receive a windfall or a pay rise.
If your circumstances change over the years, it could make sense to take out a new, shorter loan so that you can be mortgage-free sooner.
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Your home may be repossessed if you do not keep up repayments on your mortgage
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