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The mortgage term

The standard term for a mortgage is 25 years, but there is flexibility to have a shorter term if you are able to afford the higher repayments. You'll pay less in total interest with a shorter term too.

With a longer term, you'll pay less each month, but more in total because you're borrowing the money for a longer period. Having a mortgage term that continues past your retirement age is only advisable if you're sure you can afford it. Many lenders are uncomfortable doing this.

If you decide to remortgage you will usually be offered the choice to take out a new loan for the same term that remained on the old loan, or choosing a new term which could be extended back up to the original 25 years.

Extending the term will seem attractive in terms of the lower monthly payments, but the same applies as in the original term, in that final interest payments will be much higher so you will end up paying back considerably more. Due to this it is advised that, if possible, the existing term is retained.

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