44-year mortgage

michael thomas

just a quick question, is a 44yr mortgage legal? thanks

djimi

Why wouldnt it be?

Moonbeam

seems a bit crazy but possible especially if someone is renegotiating.

Pawwed Rig

35 is the longest I have heard of but no reason why a 44 year mortgage would not be legal. It is questionable whether banks should offer them to anyone over the age of 21 though as you are looking at whole life earnings.

johndaman66

Whether or not its legal, its fu*king stupid.

Even if you were to out a mortgage at the age of 20 (generally unlikely) you wouldn't have it paid back until you are 64:eek:

McCongo

There were 70 year mortgages given out in Ireland a century ago. Hundreds of thousands of them.

Gael23

Theres no reason for it not to be legal but its a massive risk to take

Galego

ryanf1 wrote: »

Theres no reason for it not to be legal but its a massive risk to take

For the lender you mean right?

Mustard1972

There's a school.of thought that says to get the longest possible mortgage that you can.
Then make overpayments to bring it to the term that you realy want.
That way you are still paying it over the shorter term that you wanted but if times got hard for you you could reduce your payments to the longer term rate til you got back on your feet.

jester77

44 is perfectly legal, it's the done thing here and some are longer. A lot of people rent until they die, paying a mortgage in the same way is seen as no different.

Gael23

Galego wrote: »

For the lender you mean right?

Partly yes but more for you. 44 years is a hell of a long time, longer than the average working lifetime of 40 years. What happens if the mortgage is not fully repaid by the time you come to retirement? So if you are older than mid 20s you will be over 70 by the time it is paid back.
Now, if in years to come you think you will be in a position to increase repayments and knock a few years off that's fine but again, you don't know tht now.

mark renton

Galego wrote: »

For the lender you mean right?

Why would it be for the lender? The bank would earn at least 100k profit on a 100k loan over 35 years, and have a life insurance policy if holder dies. Worse case scenario they have keys returned.

djimi

ryanf1 wrote: »

Partly yes but more for you. 44 years is a hell of a long time, longer than the average working lifetime of 40 years. What happens if the mortgage is not fully repaid by the time you come to retirement? So if you are older than mid 20s you will be over 70 by the time it is paid back.
Now, if in years to come you think you will be in a position to increase repayments and knock a few years off that's fine but again, you don't know tht now.

Except a bank wouldnt offer a 44 year mortgage to someone who will be over 65 before its paid off, surely?

Trish56

Max term offered by lenders currently is 35 years. Before banking crisis the max term that was offered was a 40 year term. Never heard of longer.