When we talk about your ‘mortgage term,’ we’re referring to the duration of your mortgage.
Every mortgage will last for a set period of time. Often, this will be 25, 30 or 35 years, but some mortgage terms have been known to be as long as 40 years.
If you’re on a repayment mortgage like most people, this means that by the end of your mortgage term you’ll have paid back the entirety of your loan (as well as the interest). Your monthly repayments will have been calculated with this in mind.
On the other hand, if you’re on an interest-only mortgage, this means that your monthly repayments are only designed to pay back the interest accrued on your loan, rather than the loan itself. Once your mortgage term comes to an end, you’ll need to pay back your loan in a lump sum.
If you want to reduce your monthly repayments, you can apply for an extension to your mortgage term. Just beware: although extending your mortgage term will mean you’re paying less each month, it will increase the amount of interest you end up paying overall.