Virgin Money has lifted the maximum term for all residential mortgages to 40 years.  

Previously, Virgin Money’s maximum term was 35 years. Clydesdale Bank, part of the banking group, had allowed up to 40 years for residential capital and interest home loans up to 85% loan to value, and 35 years for all other residential and landlord mortgages. 

Several lenders have lifted the maximum age they will lend to at the end of term, or the length of their loans, in recent months, as higher mortgage rates put households under pressure amid rising living costs.    

Longer terms can create lower monthly payments, but can also lead to higher amounts paid back by the borrower. The move can also see homeowners paying off their mortgages while collecting their pensions.  

Last month, specialist lenders Vida and Aldermore raised the maximum age that customers can lend on home loans until the end of their mortgage term to 80 and 75, respectively.  

The West Brom Building Society also lifted its maximum mortgage term from 35 to 40 years in November.  

In August, HSBC for Intermediaries announced it was extending its maximum mortgage term from 35 years to 40 years.    

And in July, Halifax lifted the maximum working age used in its mortgage terms to 75 from 70 for employed and self-employed customers.    

Virgin Money head of secured lending Craig Calder says: “By extending the maximum term to 40 years we’re providing borrowers with a greater range of choices to meet their individual needs, with a clear and simple policy.”  

Virgin Money also says it has also boosted the amount it can lend on fixed-rate mortgages of five years or longer, due to updates to its residential affordability tests. 

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