Mortgages with the option of a 40-year term is rising in popularity, according to data collected by Moneyfacts.
The research shows that the number of products with a 40-year term option increased from 1,217 in June 2014, to 2,744 in June 2019.
This represents an increase from 41.54 per cent to 54.98 per cent of the market.
Meanwhile, the number of 25-year term and 30-year term mortgages both declined over the same time frame, falling from 196 to 161, and 392 to 165, respectively.
As a share of the market, the number of 25-year term mortgages fell from 6.69 per cent to 3.23 per cent, and 30-year term mortgages from 13.38 per cent to 3.31 per cent.
Furthermore, the number of 35-year term mortgages remained broadly stable, increasing marginally from 38.40 per cent to 38.49 per cent, over the last five years.
Looking at the figures on a monthly basis, the number of 40-year term mortgages increased from 2,604 to 2,744 – a 4 per cent rise. In contrast, the quantity of 35-year term mortgages fell from 2,221 to 1,921 – a 5 per cent decline.
The number of 30-year term mortgages and 25-year term mortgages remained stable month-on-month, the latter rose from 140 products to 165, and the former from 152 to 161.
As a share of the market this represents an increase from 2.74 per cent to 3.31 per cent, and 2.97 per cent to 3.23 per cent, respectively.
Moneyfacts finance expert Darren Cook says: “In the past, a standard term of a mortgage generally amounted to a period of 25 years, but most products are now available for a period of 40 years.
“Since March of this year, the number of mortgage products that allow a borrower to extend their mortgage term up to 40 years has increased by 140 products.
“A reduction in the number of products available up to a maximum term of 35 years may show that there has been a slight shift in products having an additional five years in the available term.
“A longer mortgage term may reduce the monthly repayments of a mortgage, however, the additional interest that accumulates over an extended mortgage term could be considerable.
“For example, a £200,000 repayment mortgage at a rate of 2.50 per cent over 25 years equates to a monthly repayment of £897.23 and total interest payable would be £69,169 over the term.
“However, the same mortgage taken over a 40-year term would reduce the monthly repayments to £659.56 but increase the total interest to be paid to £116,588, resulting in an additional £47,419 in interest.”