"By extending the mortgage term we aim to help make mortgages more manageable with lower monthly repayments and homeownership a reality for our customers."
HSBC UK has launched its longest ever mortgage term. For the first time, those taking out a mortgage with HSBC have the option of arranging their borrowing over a 40-year term to provide lower monthly repayments.
The new 40-year terms will be an option on residential capital repayment and buy-to-let mortgages and are available via intermediaries. Any additional borrowing, either standalone or in conjunction with a remortgage can now also be taken over 40 years.
For buy-to-let applications, the maximum term will extend to 40 years on both capital repayment and interest-only.
The launch of the 40-year mortgage will be split across two dates. It will be available through mortgage brokers on Wednesday 30th August and customers making direct applications will be able to apply from Wednesday 13th September.
Andrew Matson, head of mortgages at HSBC UK, said: “We know that home ownership is a key life ambition for many people, but affordability can be an issue. We are delighted to introduce our first ever 40-year mortgage term to our customers. This move underscores our commitment to supporting aspiring homeowners in their journey onto the housing ladder.
“By extending the mortgage term we aim to help make mortgages more manageable with lower monthly repayments and homeownership a reality for our customers.”
