It’s the period of time during which, under normal circumstances and with no early repayments or overpayments, you will be paying the instalments. Mortgage terms are usually long.
When choosing the repayment term, bear in mind that:
- The longer the term, provided that the other conditions of the loan remain unchanged, the lower the instalments. However, the total interest paid will be higher.
- The longer the term, the higher the likelihood that both your personal needs and circumstances, and the terms and conditions of the loan, such as interest rates, will vary.