The Skipton Building Society has launched an extended term for mortgages with a loan to value (LTV) above 90%.
Peoplw seeking a mortgage of 90% or 95% LTV will now have the option to opt for a 35-year term, therefore reducing the monthly repayments and increasing the ability to afford the mortgage repayments.
Alex Beavis, the Skipton’s head of mortgage products, said: “As a mortgage provider it is incredibly important we continue to bring to the market new products that help people on to the property ladder. We’ve been helping people to secure their own homes since 1853 and in a constantly changing mortgage environment it’s becoming ever-more important to address the needs of our members.
“We want our first time buyer customers to feel like they are in a good place. In making these changes for them and making it that little bit easier to buy their first home, we can play a strong part in that.
“As house prices continue to climb, longer mortgage terms have grown in popularity amongst first time buyers over the past few years. Extending the mortgage terms will enable first time buyers more opportunities to get on to the property ladder, thanks to the longer terms offering lower monthly repayments and increasing affordability.
“Providing this option opens the door to an even wider audience and provides the hope that dreams of homeownership can become a reality.”