For decades, the standard UK mortgage term was simple: 25 years. It was the default for lenders, the baseline for affordability checks, and the model most homeowners expected to follow. But the UK’s housing market has dramatically changed, and so has the profile of today’s borrower. Rising house prices, stagnant wage growth, higher interest rates, and stricter affordability rules have all forced aspiring homeowners to rethink how long it will realistically take to repay a mortgage.
The result? A dramatic rise in longer mortgage terms—especially 35-year and 40-year repayment periods. These were once considered specialist products, used only by a small group of borrowers who needed a temporary affordability boost. Today, they’re mainstream, increasingly becoming the default pathway for first-time buyers trying to get on the property ladder.
This article explores why longer mortgage terms are becoming the new normal in the UK, what is driving this structural change, and what it means for borrowers, lenders, and the long-term health of the housing market.
1. The Economic Reality Behind Longer Mortgage Terms
1.1 House Prices Have Outpaced Wage Growth for 20+ Years
The UK has one of the most expensive housing markets in the world relative to income. The average home now costs between 7–9 times the average annual salary, depending on region. In London and the South East, this figure often exceeds 10–12 times.
Meanwhile, wages have not kept pace with inflation, and younger generations have seen far weaker earnings growth than their parents or grandparents did at the same age.
Longer mortgage terms are now being used as a mechanical solution to bridge the affordability gap. By stretching the repayment period from 25 to 35–40 years, borrowers can present a lower monthly repayment—allowing them to pass lender affordability checks even if the total amount borrowed is the same.
1.2 Higher Interest Rates Make Longer Terms Attractive
Between 2021 and 2023, the Bank of England increased rates sharply to combat inflation. Mortgage interest rates that were once below 2% suddenly surged above 5–6%.
A mortgage that was previously manageable over 25 years suddenly became unaffordable.
Borrowers turned to longer terms because they offer:
- Lower monthly payments
- Less financial stress during the early years
- A better chance of getting approved for a loan
Even as rates stabilise, the psychological comfort of lower monthly payments keeps long terms popular.
1.3 Tougher Affordability Tests Push Borrowers Toward Longer Terms
Regulators require lenders to “stress test” a borrower’s ability to repay at higher-than-market interest rates. For many, a 25-year term simply fails these tests.
Increasing the term is often the only way to meet affordability rules without reducing the loan amount—something most buyers cannot afford to do if they want to purchase a suitable property.
2. The First-Time Buyer Effect: A Generation Forced into Long-Term Debt
2.1 First-Time Buyers Now Make Up Most Long-Term Mortgage Borrowers
Banks and brokers consistently report that the majority of 35–40-year mortgage applications come from first-time buyers.
Why? Because:
- They face the highest hurdle: saving a deposit
- Rent absorbs a large portion of their income
- Many have student loans
- House prices are at record highs
For this group, longer terms aren’t a “choice”—they’re a necessity.
2.2 Deposits Are Still the Main Barrier
Even though 95% mortgages exist, buyers still need:
- A 5–10% deposit
- Stamp duty (if applicable)
- Solicitor fees
- Surveys and moving costs
Saving this while paying high rent is difficult, especially in major cities.
By extending the term, buyers can free up some of their income each month and redirect more money toward deposit savings or meeting affordability thresholds.
2.3 A Cultural Shift: Homeownership Delayed
Previous generations often bought homes in their twenties and paid off mortgages by their late fifties.
Today:
- The average first-time buyer age is approaching 33–34 nationwide
- In London, it’s closer to 36–38
This means:
- A 25-year term ends near retirement
- A 35-year term ends around age 70
- A 40-year term may extend beyond age 75
As late-life working becomes more common, lenders are adapting their criteria, creating a market where longer terms feel normal.
3. Why Lenders Are Offering More 35–40-Year Mortgages
3.1 Competitive Pressure in a Sluggish Housing Market
With many buyers squeezed out by affordability issues, lenders are competing for a smaller pool of eligible borrowers.
Offering longer terms:
- Expands the number of people who qualify
- Increases loan size without breaching affordability barriers
- Boosts lender profits over the life of the loan
3.2 The Rise of Flexible Mortgage Products
Many products now allow:
- The option to shorten the term later
- Unlimited or generous overpayment allowances
- Term extensions without remortgaging
This flexibility reduces borrower fear of long-term commitment.
3.3 Lenders See Longer Mortgages as Lower-Risk Than Interest-Only Loans
Interest-only mortgages nearly vanished after the 2008 financial crisis because many borrowers reached maturity with no repayment plan.
Longer repayment mortgages provide:
- More predictable repayment schedules
- Lower arrears risk
- Better regulatory compliance
Thus, lenders prefer offering longer repayment terms over interest-only options, except for high-net-worth clients.
4. The Mathematics: Why Longer Terms Reduce Monthly Payments but Increase Total Interest
A key reason long-term mortgages are popular is simple: monthly affordability.
However, borrowers often underestimate how much a longer term increases total interest paid.
Example:
A £250,000 mortgage at 5% interest:
| Term | Monthly Payment | Total Interest Paid |
|---|---|---|
| 25 years | ~£1,462 | ~£189,000 |
| 30 years | ~£1,342 | ~£233,000 |
| 35 years | ~£1,257 | ~£269,000 |
| 40 years | ~£1,205 | ~£321,000 |
A 40-year mortgage reduces monthly payments by over £250 versus a 25-year term, but adds more than £130,000 in additional interest.
For many borrowers, though, the priority is getting onto the ladder now, knowing they can reduce the term later as their income increases.
5. Are Longer Mortgage Terms a Problem or a Practical Solution?
5.1 The Positive View: A Modern Tool for a Modern Market
Supporters argue that long-term mortgages:
- Help renters escape the rent trap
- Provide a pathway to homeownership without extreme deposits
- Allow households to manage cash flow
- Recognise longer working lives
- Align the UK with international norms (e.g., Japan, Netherlands)
These benefits make longer terms feel not only practical but inevitable.
5.2 The Negative View: A Risk of “Lifetime Debt”
Critics raise several concerns:
- Borrowers may still be paying mortgages well into retirement
- The overall cost of the mortgage is far higher
- It may reduce financial flexibility for future life events
- It masks deeper structural housing problems like under-supply
Some argue that longer terms simply treat the symptoms—high prices—rather than the cause.
6. The Impact on the Broader Housing Market
6.1 “Stretched Affordability” Has Become the New Normal
As long terms become mainstream, they absorb demand that might otherwise soften the housing market.
This helps:
- Keep transaction volumes steady
- Reduce price falls
- Support mortgage industry profitability
But it also stabilises house prices at high levels, making it harder for future generations to buy.
6.2 Potential Implications for Retirement Planning
With many borrowers expected to still have mortgage debt in their 60s and 70s:
- Pension contributions may suffer
- Retirees may face housing instability
- Equity release and later-life mortgages will likely grow
Banks are already preparing for a future where more older borrowers carry long-term debt.
6.3 A Shift in Property Culture
Long-term debt is becoming accepted as part of modern life—similar to the way student loans and car finance have become normalised.
The idea of owning a home early is fading; instead, many now see homeownership as a lifetime commitment.
7. Should You Choose a 35–40-Year Mortgage?
A longer term may suit you if:
- You are a first-time buyer struggling to pass affordability checks
- You need lower monthly payments
- You expect your income to grow
- You plan to refinance or shorten the term later
- You prioritise buying now instead of waiting years to save more deposit
You may want to avoid a long term if:
- You are close to retirement
- You want to minimise total interest
- You have unstable income
- You want to be mortgage-free earlier in life
Each situation is unique—speaking to a broker is often the best way to evaluate your long-term outlook.
8. The Future: Are 50–60-Year Mortgages Next?
Some experts predict the introduction of ultra-long mortgage terms—50 or even 60 years—common in countries like Japan.
This would:
- Reduce monthly payments even further
- Allow multi-generational mortgages
- Enable young buyers to borrow larger sums for homes in expensive cities
However, UK regulators remain cautious.
Still, based on current trends, the market seems headed in that direction, especially if prices continue to rise faster than earnings.
Conclusion: A New Era of UK Homeownership
The rise of 35–40-year mortgages is more than a financial trend—it’s a reflection of a deeper shift in the UK’s housing economy.
High house prices, stricter lending rules, and rising interest rates have combined to make longer mortgage terms essential for millions of buyers. What once seemed unusual is now becoming mainstream, especially among first-time buyers who face record affordability challenges.
While longer terms improve access to homeownership, they come with a trade-off: significantly higher lifetime interest costs and the risk of repaying debt later in life.
But for many, the choice is clear:
Rent forever, or buy now with a longer mortgage term.
And increasingly, buyers are choosing the latter.