| Long-term mortgages have surged in popularity in recent years | More than six in 10 would-be FTBs would struggle to afford mortgage payments | A longer mortgage term is an ideal way to get a foot on the ladder but results in more interest overall |
Longer-term mortgages have surged in popularity in recent years and it’s not hard to see why. In a market that can sometimes feel impenetrable for FTBs, spreading repayments over a longer time period can help make buying a home more affordable.
More than six in 101 would-be FTBs said that affording the mortgage payments was a significant obstacle to buying a home. In this context, a longer mortgage term is an ideal way to get a foot on the ladder.
Take the example of a young couple borrowing £250,000 at the average rate of 5.05%. Analysis2 shows that they could save £255 on their payments each month by choosing a 40-year mortgage term instead of a 25-year term.
Of course, a longer term does mean that over the whole lifetime of the mortgage, borrowers will end up paying more interest overall. It can therefore be worth considering making overpayments on a mortgage, where possible.
It’s important to choose a mortgage term that is suitable for your circumstances. While a longer term mortgage can make getting on the ladder easier, it’s vital to plan ahead to ensure you are not saddled with mortgage debt in retirement, or in a situation where you are having to push back retirement because of mortgage costs.
1Building Societies Association, 2025, 2Moneyfacts, 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.
