Pepper Money has increased the maximum mortgage term across its affordable housing schemes from 35 to 40 years.

The change applies to Shared Ownership, Right to Buy, Help to Buy remortgages, Help to Buy Wales and First Homes.

Pepper says the move will give first-time buyers and other eligible borrowers greater flexibility over their monthly repayments.

A longer mortgage term can reduce monthly payments, although borrowers may pay more interest over the life of the loan.

The change brings the maximum term available across Pepper Money’s affordable housing range in line with its standard residential proposition.

Pepper Money director of sales Paul Adams says: “For customers buying through affordable housing schemes, finding a mortgage that fits their monthly budget is an important part of making homeownership work.

“Extending our maximum term to 40 years gives brokers another option when helping eligible customers balance mortgage repayments with wider household costs.

“A longer term will not suit everyone. Advice is essential to help customers understand the trade-off between lower monthly repayments and the potential for a higher total cost over the life of the mortgage.”