HSBC yesterday announced a policy change, increasing its maximum mortgage term from 35 to 40 years.

The lender said the criteria changes, which covers all lending types including purchase, remortgaging and additional borrowing, will come into effect through mortgage brokers today. Customers  making direct applications will be able to apply from Wednesday 13 September.

Reflecting on the change, which largely brings HSBC into line with the maximum term on offer from most of its peers, Andrew Matson, head of mortgages at the lender, commented: “We know that home ownership is a key life ambition for many people, but affordability can be an issue.

“We are delighted to introduce our first ever 40-year mortgage term to our customers. This move underscores our commitment to supporting aspiring homeowners in their journey onto the housing ladder.

“By extending the mortgage term we aim to help make mortgages more manageable with lower monthly repayments and homeownership a reality for our customers.”

Last month, it was revealed that the number of people taking out mortgages with terms of 35 years or more hit a high of 88,059 in 2022 compared to just 40,471 in 2018 – up 11%.