{"id":237906,"date":"2023-10-06T08:49:48","date_gmt":"2023-10-06T08:49:48","guid":{"rendered":"https:\/\/lovemainstream.com\/?p=237906"},"modified":"2023-10-06T08:49:48","modified_gmt":"2023-10-06T08:49:48","slug":"what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun","status":"publish","type":"post","link":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/","title":{"rendered":"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun"},"content":{"rendered":"

SOARING house prices has made it more difficult for first-time buyers to get on the property ladder.<\/strong><\/p>\n

But so-called marathon mortgages could be the answer for some aspiring homeowners.<\/p>\n

<\/p>\n

However, these deals have some pitfalls that borrowers need to understand. \u00a0<\/p>\n

Nicholas Mendes, mortgage technical manager at broker John Charcol, has helped hundreds of people buy their dream home.<\/p>\n

Here he explains everything you need to know about the latest mortgage trend.<\/p>\n

What are marathon mortgages?<\/strong><\/h2>\n

The phrase describes mortgages that are paid back over longer periods of time.<\/p>\n

Read more on Money <\/h2>\n

<\/picture>ON A ROLL <\/span><\/p>\n

Greggs shares major update on sausage roll prices and fans will be delighted<\/h3>\n

<\/picture>NOT SO SMART<\/span><\/p>\n

Warning to smart meters users over switching providers – are you affected?<\/h3>\n

It comes as one in four buyers under 30 have a mortgage with a term of 35 years or longer, according to data from credit firm Experian. \u00a0<\/p>\n

Nicholas says: \u201cHistorically homebuyers had a mortgage term of 25 years.<\/p>\n

\u201cBut since the pandemic property prices have gone up.<\/p>\n

\u201cAnd the average term has gone up to around 30 or 35 years \u2013 many lenders will even give terms of 40 years.\u201d<\/p>\n

Most read in Money<\/h2>\n

<\/picture>‘A REAL SHAME’ <\/span><\/p>\n

Walkers axes crisp flavour for good & shoppers say sandwiches are RUINED<\/h3>\n

<\/span><\/p>\n

<\/picture>TAKEN TO COURT <\/span><\/p>\n

My neighbour built a fence THROUGH my tennis court – now I\u2019m suing for \u00a3350k<\/h3>\n

<\/span><\/p>\n

<\/picture>TAKING THE BISCUIT<\/span><\/p>\n

McVities fans go wild for change to beloved Christmas biscuit range<\/h3>\n

<\/span><\/p>\n

<\/picture>STAYING TOASTY <\/span><\/p>\n

B&M shoppers rush to buy \u00a38 winter must-have to save putting the heating on<\/h3>\n

<\/span><\/p>\n

A mortgage term isn't fixed for the duration of the loan and can be changed each time you remortgage.<\/p>\n

For example, if you take out the mortgage on a 35 year basis, there's nothing to stop you moving to a 25-year term if you can afford it when taking out a new deal. <\/p>\n

Longer terms are one way lenders can allow borrowers to take on bigger mortgages.<\/p>\n

Nicholas adds: \u201cTo be able to afford a home, first-time buyers are borrowing more and stretching it over a longer term.\u201d<\/p>\n

Longer term mortgages have also become possible because more lenders are willing to lend past the state retirement age.<\/p>\n

Nicholas says: \u201cPeople are working later, so lenders are now more open to people taking out a mortgage at an older age to allow lending later in life.\u201d<\/p>\n

What are the drawbacks?<\/h2>\n

Having a longer mortgage term give buyers the means to borrow more and buy a pricier home.<\/p>\n

On the surface, this sounds like a win for first-time buyers struggling to afford property prices.<\/p>\n

However, borrowing over a longer term means that you will pay more for the debt.<\/p>\n

Nicholas says: \u201cThe longer the term the more interest you pay<\/p>\n

\u201cThis could be tens of thousands of pounds more, depending on the amount borrowed.\u201d<\/p>\n

For example, someone borrowing \u00a3300,000 over 25 years at a rate of 4.98% would pay a total of \u00a3225,320 in interest. \u00a0<\/p>\n

Whereas borrowing the same \u00a3300,000 over 40 years at a rate of 4.98% would mean you\u2019d repay whopping \u00a3392,887.<\/p>\n

That\u2019s \u00a3167,567 more in interest just by stretching the same borrowing over an extra 15 years. \u00a0<\/p>\n

Is a marathon mortgage right for me?<\/strong><\/h2>\n

Taking out a longer term mortgage could be the difference between buying a home and not being able to.<\/p>\n

Younger borrowers under 30 could particularly find the stretch is a useful way of getting on the ladder.<\/p>\n

These buyers will in theory have plenty of time to reduce their mortgage term if their earnings increase or they build up more equity in their property.<\/p>\n

Nicholas says: "Marathon mortgages aren\u2019t available to everyone<\/p>\n

"Most people are under 30 and earlier in their career.<\/p>\n

" But if salaries don\u2019t increase it\u2019s a risk.<\/p>\n

"If your income hasn't improved or you plan to retire, which could mean a lower income, this could mean having to sell the home and downsize so it's affordable."<\/p>\n

But anyone looking to take out a new mortgage should first have an idea of their budget and how much they can afford to repay each month.<\/p>\n

Nicholas says: \u201cYou should go for the shortest possible term.<\/p>\n

\u201cEven if it\u2019s just going for 34 years instead of 35.\u201d<\/p>\n

The mortgage expert said that having a longer mortgage term could cause problems later on.<\/p>\n

He adds: \u201cYou don\u2019t know what your circumstances will be further down the line.<\/p>\n

\u201cYou don\u2019t want to be waiting to retire because you have a mortgage that\u2019s still hanging over you.<\/p>\n

\u201cIt could potentially mean having to work longer later in life when actually you want to be taking your foot off the gas.\u201d<\/p>\n

Another potential downfall of a marathon mortgage is that it will take you longer to build up equity in your property because more of you repayments will be swallowed by interest.<\/p>\n

Nicholas explains: \u201cWith a longer term mortgage equity is built up much slower.<\/p>\n

\u201cThis means that when it comes to home moving \u2013 you might not have as much as cash to use as a deposit for your next property that you might expect.\u201d<\/p>\n

How to get the best deal on your mortgage<\/h2>\n

Looking for a mortgage is complicated and the easiest way to search the market is by buying using a good independent mortgage broker. <\/p>\n

The larger your deposit as a percentage of the property price, the more favourable rate you will be able to get from lenders. <\/p>\n

You will also be able to unlock better rates if you have a good credit score and there are a number of steps you can take to help improve your rating. <\/p>\n

Don't wait until the very end of your mortgage term to look for a new deal.<\/p>\n

You can secure a mortgage deal a good six months before a deal ends and still make a fresh application if a better rate becomes available before you lock in. <\/p>\n

Some brokers charge for advice, so make sure you are aware of all costs. <\/p>\n

You'll should also factor in fees for the mortgage, as well as legal costs. <\/p>\n

Read More on The Sun<\/h2>\n

<\/picture>CASH BOOST <\/span><\/p>\n

Thousands of low-paid workers could get \u00a31,000s after huge holiday pay ruling<\/h3>\n

<\/picture>coupled up <\/span><\/p>\n

Love Island\u2019s Teddy reveals he\u2019s found love again – six months since Faye split<\/h3>\n

A mortgage calculator\u00a0can give an indication of how much you could borrow.<\/p>\n

We have spoken to a pair of first-time buyers who got their \u00a3466,000 home with a DIY help to buy scheme. <\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SOARING house prices has made it more difficult for first-time buyers to get on the property ladder. But so-called marathon mortgages could be the answer for some aspiring homeowners. However,…<\/p>\n","protected":false},"author":2,"featured_media":237905,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"yoast_head":"\nWhat I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com\" \/>\n<meta property=\"og:description\" content=\"SOARING house prices has made it more difficult for first-time buyers to get on the property ladder. But so-called marathon mortgages could be the answer for some aspiring homeowners. However,…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/\" \/>\n<meta property=\"og:site_name\" content=\"lovemainstream.com\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-06T08:49:48+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/lovemainstream.com\/wp-content\/uploads\/2023\/10\/What-I-tell-every-first-time-buyer-about-\u2018marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-The-Sun.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/\",\"url\":\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/\",\"name\":\"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com\",\"isPartOf\":{\"@id\":\"https:\/\/lovemainstream.com\/#website\"},\"datePublished\":\"2023-10-06T08:49:48+00:00\",\"dateModified\":\"2023-10-06T08:49:48+00:00\",\"author\":{\"@id\":\"https:\/\/lovemainstream.com\/#\/schema\/person\/abc9aeefdadf991087d66599cfc40c8d\"},\"breadcrumb\":{\"@id\":\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/lovemainstream.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Lifestyle\",\"item\":\"https:\/\/lovemainstream.com\/category\/lifestyle\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/lovemainstream.com\/#website\",\"url\":\"https:\/\/lovemainstream.com\/\",\"name\":\"lovemainstream.com\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/lovemainstream.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/lovemainstream.com\/#\/schema\/person\/abc9aeefdadf991087d66599cfc40c8d\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/lovemainstream.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/38da2a5c83e5b947af91e83c833be9d1?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/38da2a5c83e5b947af91e83c833be9d1?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/","og_locale":"en_US","og_type":"article","og_title":"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com","og_description":"SOARING house prices has made it more difficult for first-time buyers to get on the property ladder. But so-called marathon mortgages could be the answer for some aspiring homeowners. However,…","og_url":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/","og_site_name":"lovemainstream.com","article_published_time":"2023-10-06T08:49:48+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/lovemainstream.com\/wp-content\/uploads\/2023\/10\/What-I-tell-every-first-time-buyer-about-\u2018marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-The-Sun.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/","url":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/","name":"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun - lovemainstream.com","isPartOf":{"@id":"https:\/\/lovemainstream.com\/#website"},"datePublished":"2023-10-06T08:49:48+00:00","dateModified":"2023-10-06T08:49:48+00:00","author":{"@id":"https:\/\/lovemainstream.com\/#\/schema\/person\/abc9aeefdadf991087d66599cfc40c8d"},"breadcrumb":{"@id":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/lovemainstream.com\/lifestyle\/what-i-tell-every-first-time-buyer-about-marathon-mortgages-including-the-big-retirement-risk-and-the-167000-cost-the-sun\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/lovemainstream.com\/"},{"@type":"ListItem","position":2,"name":"Lifestyle","item":"https:\/\/lovemainstream.com\/category\/lifestyle\/"},{"@type":"ListItem","position":3,"name":"What I tell every first-time buyer about \u2018marathon mortgages\u2019 including the big retirement risk and the \u00a3167,000 cost | The Sun"}]},{"@type":"WebSite","@id":"https:\/\/lovemainstream.com\/#website","url":"https:\/\/lovemainstream.com\/","name":"lovemainstream.com","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lovemainstream.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/lovemainstream.com\/#\/schema\/person\/abc9aeefdadf991087d66599cfc40c8d","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/lovemainstream.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/38da2a5c83e5b947af91e83c833be9d1?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/38da2a5c83e5b947af91e83c833be9d1?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/posts\/237906"}],"collection":[{"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/comments?post=237906"}],"version-history":[{"count":1,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/posts\/237906\/revisions"}],"predecessor-version":[{"id":237907,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/posts\/237906\/revisions\/237907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/media\/237905"}],"wp:attachment":[{"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/media?parent=237906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/categories?post=237906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lovemainstream.com\/wp-json\/wp\/v2\/tags?post=237906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}