What Is the Longest Mortgage Term in the UK?
Mortgage terms of up to 40 years are available from a number of major UK mortgage lenders, while some mortgage products now allow eligible borrowers to take a term of up to 50 years.
A longer mortgage term can reduce your required monthly payment because the mortgage is repaid over a greater number of years. However, you will normally pay more interest overall and build equity in your property more slowly.
The longest term available to you will depend on factors including your age, expected retirement age, income, affordability and the lender’s individual criteria.
Could a Longer Mortgage Term Help You?
A longer mortgage term can reduce your monthly repayments, but choosing the longest term available is not automatically the most suitable option.
At Kerr & Watson, we can compare lenders and different mortgage terms to help you understand the effect on your monthly payments, overall cost and longer-term plans.
Longest Mortgage Terms in the UK: At a Glance
| Mortgage term | Availability |
|---|---|
| 25 years | Traditionally common and still widely available |
| 30 years | Widely available |
| 35 years | Widely available |
| 40 years | Available from many lenders |
| 45 years | Available from some lenders |
| 50 years | Available on some mortgage products, subject to criteria |
| No fixed end date | Possible with some Later Life Lending products |
The maximum term advertised by a lender does not mean every borrower will qualify for it.
Your age and the lender’s maximum age at the end of the mortgage term can significantly reduce the term available.
Are 50-Year Mortgages Available in the UK?
Yes. Mortgage terms of up to 50 years are now available in the UK on some residential mortgage products.
For example, at the time of writing, Nottingham Building Society’s Make it Possible range allows eligible homebuyers to take a mortgage term of up to 50 years.
Its standard residential mortgage range has a maximum term of 40 years, so the 50-year option applies to a specific lending proposition rather than every mortgage offered by the lender.
Other lenders have different maximum terms.
Many major lenders, including Nationwide, Halifax, Barclays and NatWest, currently allow mortgage terms of up to 40 years, subject to their individual lending criteria.
What Is a Mortgage Term?
Your mortgage term is the total period over which your mortgage is scheduled to be repaid.
For example, if you take a repayment mortgage over 35 years and make all of the required payments, the mortgage should be fully repaid at the end of those 35 years.
This is different from your mortgage deal or initial rate period.
You might have a 40-year mortgage term but choose a two-year or five-year fixed-rate mortgage product. When that fixed period ends, you would normally review your mortgage again, but the remaining overall mortgage term would continue.
This distinction is important because taking a 40-year mortgage does not mean your interest rate is fixed for 40 years.
Why Are Mortgage Terms Getting Longer?
Historically, 25 years was commonly used as a mortgage term.
Longer terms have become increasingly common, particularly among first-time buyers trying to balance property prices with affordable monthly repayments.
A longer repayment period reduces the amount of capital that needs to be repaid each month.
This can make monthly payments more manageable, although it does not necessarily mean that a lender will allow you to borrow more.
Mortgage affordability is assessed using the lender’s own calculations and criteria.
What Are the Benefits of a Longer Mortgage Term?
Lower Monthly Mortgage Payments
The main advantage of extending a repayment mortgage over more years is that the required monthly payment normally falls.
For example, repaying the same mortgage over 40 years rather than 25 years spreads repayment of the capital across an additional 15 years.
This can provide more room in your monthly budget.
It Can Help With Mortgage Affordability
A lower contractual monthly payment can sometimes help when assessing mortgage affordability.
However, a longer mortgage term does not guarantee that you will be able to borrow more.
Lenders consider your income, expenditure, debts, loan-to-value, credit history and other factors alongside the mortgage term.
More Flexibility at the Beginning of the Mortgage
Some borrowers prefer a longer initial mortgage term to keep their required monthly payment lower.
If the mortgage permits overpayments, they may then choose to pay more than the minimum amount when their finances allow.
Any overpayments need to remain within the lender’s permitted allowance to avoid possible early repayment charges.
What Are the Disadvantages of a Longer Mortgage Term?
You Normally Pay More Interest Overall
This is the biggest disadvantage.
Although your monthly payment is lower, you are borrowing the money for longer.
That normally means significantly more interest is paid over the full life of the mortgage.
The difference can become substantial when comparing a 25-year mortgage with a 40- or 50-year term.
You Repay the Mortgage More Slowly
During the early years of a long repayment mortgage, a greater proportion of your monthly payment can go towards interest rather than reducing the capital balance.
This means you can build equity more slowly than somebody repaying the same mortgage over a shorter term.
Your Mortgage Could Continue Into Retirement
A very long mortgage term can mean continuing to make mortgage payments after your planned retirement age.
Where a mortgage extends into retirement, lenders may need to assess whether the mortgage remains affordable using the income you expect to receive at that stage.
This could include pension income or other acceptable retirement income depending on the lender.
You May Have Fewer Lenders Available
Although 40-year mortgage terms are now available from a number of lenders, terms beyond 40 years remain less widely available.
The longer the term required, the smaller the potential lender pool may become.
Find out Your Options
Does Your Age Affect the Maximum Mortgage Term?
Yes.
A lender may offer mortgages with a maximum term of 40 years, but that does not necessarily mean you personally can borrow over 40 years.
Lenders can also impose a maximum age at the end of the mortgage term.
For example, where a lender has a maximum age of 75 at the end of the term, a 30-year-old could potentially fit within a 40-year maximum term, while a 55-year-old could not.
Some lenders are prepared to lend further into retirement than others.
Your age, expected retirement date and how the mortgage will be affordable after retirement can therefore be just as important as the lender’s headline maximum mortgage term.
Is a 40-Year Mortgage a Good Idea?
A 40-year mortgage can be appropriate for some borrowers, particularly where reducing the required monthly payment is important.
However, it should be compared with shorter alternatives.
If you can comfortably afford a 30- or 35-year mortgage, for example, choosing the shorter term could reduce the total amount of interest you pay and allow you to repay the mortgage sooner.
The most appropriate term is therefore not necessarily the longest or shortest available.
It needs to provide an affordable monthly commitment while fitting with your longer-term financial plans.
Is a 50-Year Mortgage a Good Idea?
The same principle applies to a 50-year mortgage.
A 50-year term can make the required monthly repayment lower than a shorter mortgage term, which could be helpful for some borrowers.
However, the additional years can materially increase the total interest paid if the mortgage remains in place for the full term.
Someone taking a 50-year mortgage should therefore understand:
- the monthly payment compared with shorter terms;
- how much additional interest could be paid;
- their expected age when the mortgage ends;
- whether the mortgage extends into retirement;
- their ability to make future overpayments; and
- whether they expect to shorten the term later.
A 50-year term should not be selected simply because it produces the lowest monthly payment.
Can You Take a Long Mortgage Term and Overpay?
Potentially, yes.
One approach can be to choose a longer contractual mortgage term, giving you a lower required monthly payment, while making voluntary overpayments when affordable.
Overpayments reduce the mortgage balance more quickly and can reduce the amount of interest you pay.
However, mortgage products normally have rules governing how much you can overpay without an early repayment charge.
You should check the terms of the particular mortgage before making additional payments.
Can You Shorten Your Mortgage Term Later?
Potentially.
You may be able to reduce your mortgage term when remortgaging or completing a product transfer, provided the resulting monthly payment remains affordable.
Your existing lender may also allow a term change during the mortgage, subject to its criteria.
For example, someone who initially chooses a 40-year term to keep payments manageable may decide to reduce the remaining term later if their income rises.
The lender may need to complete an affordability assessment depending on the change being requested.
Can You Extend an Existing Mortgage Term?
Potentially.
If you already have a repayment mortgage, increasing the remaining term can reduce the required monthly payment.
The exact process depends on your lender and circumstances.
Extending a mortgage term means it will normally take longer to repay the mortgage and increase the total interest paid.
If you are considering extending the term because you are struggling with your mortgage payments, speak to your lender as early as possible about the support available.
What About Retirement Interest Only and Lifetime Mortgages?
Later-life mortgages need to be considered separately from standard repayment mortgages.
Some Retirement Interest Only mortgages do not have a predetermined end date. Instead, the mortgage is normally repaid following a specified life event, such as the last borrower dying, moving permanently into long-term care or selling the property.
Lifetime mortgages also operate differently from conventional repayment mortgages.
For that reason, when discussing a maximum mortgage term of 40, 45 or 50 years, we are generally referring to conventional residential mortgages with a specified term.
How Do We Decide What Mortgage Term to Recommend?
We do not automatically recommend the longest mortgage term available simply because it produces the lowest monthly payment.
When considering an appropriate term, we look at factors including:
- your required mortgage amount;
- income and monthly expenditure;
- age;
- expected retirement age;
- deposit or equity;
- monthly payment preference;
- longer-term plans;
- whether you expect your income to change;
- the lender’s maximum term and age criteria; and
- whether you intend to make overpayments.
We can then compare how different mortgage terms affect both the required monthly payment and your longer-term borrowing.
Should You Choose the Longest Mortgage Term Available?
Not necessarily.
Long mortgage terms can be useful because they reduce the minimum monthly repayment, and terms of 40 years or more can give some borrowers greater flexibility.
However, lower monthly payments come with the trade-off of slower capital repayment and potentially substantially more interest over the life of the mortgage.
The right term should balance affordability today with the cost and practicality of repaying the mortgage in the future.
Could a Longer Mortgage Term Be Right for You?
If you are considering a 35-, 40-, 45- or 50-year mortgage, we can compare the lenders and terms available based on your age, income and circumstances.
At Kerr & Watson, we can show you how different mortgage terms affect your monthly payments and help identify an appropriate mortgage based on both your current budget and longer-term plans. Contact us today.
