Pepper Money, the specialist mortgage lender, has increased the maximum mortgage term for its Affordable Homeownership Schemes from 35 to 40 years. The change applies to Shared Ownership, Right to Buy, Help to Buy remortgages, Help to Buy Wales and First Homes.
Criteria enhancement is aimed at providing first-time buyers and other eligible customers greater flexibility to manage their monthly mortgage repayments. While a longer term can reduce monthly repayments, it may increase the total amount repaid over the life of the loan. The appropriate term will depend on each customer’s circumstances.
The change also brings Pepper Money’s Affordable Homeownership maximum term in line with its standard residential proposition and broadens the options available to brokers supporting customers who may not fit a traditional high-street lending approach.
Paul Adams, Director of Sales at Pepper Money, said:
For customers buying through affordable homeownership schemes, finding a mortgage that fits their monthly budget is an important part of making homeownership work. Extending our maximum term to 40 years gives brokers another option when helping eligible customers balance mortgage repayments with wider household costs.“
“A longer term will not suit everyone. Advice is essential to help customers understand the trade-off between lower monthly repayments and the potential for a higher total cost over the life of the mortgage.”
Paul Adams,
Sales Director
at Pepper Money
The new criteria are available now, subject to Pepper Money’s usual affordability, credit and lending requirements.