Are 35 and 40-Year Mortgages Becoming the New Normal for Younger Borrowers?
Longer mortgage terms are becoming increasingly common as younger homeowners and first-time buyers look for ways to make monthly mortgage repayments more manageable. But reducing the monthly payment can come with a significant long-term cost.
Longer mortgage terms are now a major part of the UK mortgage market
The move towards longer repayment periods is not based on one survey alone. Official government and Financial Conduct Authority data shows that longer mortgage terms have become particularly common among younger borrowers and first-time buyers.
The English Housing Survey 2024–25 found that 68% of mortgagor households aged 16–34 had mortgage terms of 30 years or more.
FCA data shows that 68% of first-time buyers borrowed over terms of 30 years or longer in 2024.
FCA Product Sales Data recorded 318,839 regulated mortgage sales with terms of 35 years or more in 2025.
Why are more borrowers choosing 30, 35 and 40-year mortgages?
One of the main attractions of a longer repayment mortgage term is straightforward: spreading repayment of the capital over more years generally reduces the required monthly repayment, assuming the mortgage amount and interest rate remain the same.
That can be particularly important for first-time buyers who are balancing mortgage affordability with a deposit, household bills, commuting costs and other financial commitments.
Lower required monthly repayments
Extending the term means the capital is repaid over a longer period, which can reduce the amount required each month.
Affordability pressures
For buyers requiring larger mortgages, a longer term may make the monthly commitment more manageable within their household budget.
Higher property prices
Buyers in higher-value areas may need larger mortgages, making repayment term an increasingly important part of the affordability discussion.
More flexibility at the outset
Some borrowers may prioritise a lower required payment initially and review their term or repayment strategy later as their circumstances change.
A longer mortgage term can reduce your required monthly repayments, but because the mortgage is outstanding for longer, you may pay substantially more interest over the full repayment period.
What could a longer mortgage term mean for a first-time buyer?
Consider someone looking to buy their first property in Wimbledon or elsewhere in the London Borough of Merton.
According to Office for National Statistics housing data, the average price paid by a first-time buyer in Merton was approximately £509,000 in June 2026.
In a higher-value area such as this, the amount that needs to be borrowed can make the choice between a 25, 30, 35 or 40-year mortgage particularly important.
Source: ONS / UK House Price Index
Illustrative example: £500,000 property with a 10% deposit
Imagine a buyer purchasing a property for £500,000 and providing a 10% deposit. They would require a £450,000 repayment mortgage.
For illustration only, assume an interest rate of 5% remained unchanged throughout the entire repayment period.
| Mortgage Term | Approx. Monthly Payment | Approx. Total Interest | Approx. Total Repaid |
|---|---|---|---|
| 25 years | £2,631 | £339,000 | £789,000 |
| 30 years | £2,416 | £420,000 | £870,000 |
| 35 years | £2,271 | £504,000 | £954,000 |
| 40 years | £2,170 | £592,000 | £1,042,000 |
In this simplified example, extending the mortgage from 25 years to 40 years reduces the required monthly repayment by approximately £461 per month.
However, if the mortgage remained at the assumed 5% rate for its entire term, the borrower could pay approximately £253,000 more interest over 40 years than over 25 years.
A lower monthly payment does not necessarily mean a cheaper mortgage
Potential advantage
A longer term can reduce the contractual monthly payment, which could make the mortgage easier to accommodate within a borrower's monthly budget.
Potential long-term cost
Interest is charged while the mortgage remains outstanding. Borrowing for considerably longer can therefore increase the overall amount repaid.
35-year mortgage terms have increased significantly
FCA Product Sales Data provides another indication of how the mortgage market has changed.
The FCA recorded 260,688 regulated mortgage sales with terms of 35 years or more in 2021. By 2025, that had increased to 318,839.
| Year | Regulated Mortgage Sales With Terms of 35+ Years |
|---|---|
| 2021 | 260,688 |
| 2022 | 267,467 |
| 2023 | 266,174 |
| 2024 | 287,162 |
| 2025 | 318,839 |
30-year-plus terms are particularly common among younger homeowners
The English Housing Survey 2024–25 found that among mortgagor households aged 16–34, the most common mortgage length was 30 years or more.
More than two-thirds of mortgagor households aged 16–34 were in this category.
One quarter of younger mortgagor households had mortgage terms between 20 and 29 years.
A comparatively small proportion had mortgage terms below 20 years.
What does the 66% figure actually tell us?
Recent analysis from mortgage overpayment app Sprive looked at more than 190,000 homeowners and found that 66% of mortgage holders under 30 within its dataset had terms of between 30 and 40 years.
The analysis also reported that 42% of homeowners aged 30–39 had mortgage terms of this length, compared with 6% of homeowners aged 40–49.
The Sprive figures are industry analysis based on its dataset and should not be interpreted as official statistics or as representing every UK mortgage borrower. The broader trend towards longer terms, however, is also visible in official English Housing Survey and FCA data.
What happens if a longer mortgage runs towards retirement?
A 35 or 40-year mortgage can potentially mean carrying mortgage debt much later into working life. This makes the borrower's age at the end of the mortgage an important consideration alongside the initial monthly payment.
Lenders have their own criteria around age, expected retirement, retirement income and affordability. The mortgage options available will therefore depend on individual circumstances.
A mortgage extending into later life is not automatically unsuitable, but borrowers should consider how repayments could be maintained if their income changes in the future.
Does taking a 40-year mortgage mean keeping it for 40 years?
Not necessarily. A borrower's mortgage arrangements can potentially change over time, depending on their circumstances, lender requirements and the terms of their mortgage.
Early repayment charges, overpayment limits, affordability assessments and other restrictions may apply, so the terms of the individual mortgage should always be checked.
25, 30, 35 or 40 years: which mortgage term should you choose?
There is no single mortgage term that is right for everybody. The appropriate repayment period depends on the borrower's finances, objectives and longer-term plans.
25-year mortgage
Higher required monthly repayments than an equivalent longer term, but the mortgage is repaid sooner and total interest may be substantially lower.
30-year mortgage
Can provide a middle ground between reducing the monthly payment and extending the overall repayment period.
35-year mortgage
May further reduce the required monthly payment, but can increase the total amount of interest paid if maintained for the full term.
40-year mortgage
May provide the lowest required monthly repayment of these examples, but involves the longest repayment period and potentially a considerably higher overall interest cost.
What should you consider before choosing a longer mortgage?
It can be useful to look beyond the headline monthly payment and consider how the mortgage could fit into your wider financial position.
A longer mortgage term is a financial tool, not automatically a good or bad choice
For one borrower, extending the mortgage term could help keep the required monthly repayment at a manageable level.
For another borrower who can comfortably afford higher monthly repayments, a shorter mortgage term could reduce the amount of interest paid over time.
The important question is therefore not simply “Can I get a 40-year mortgage?”
It is “What mortgage term is appropriate for my circumstances now and over the longer term?”
Questions about 35 and 40-year mortgages
Can you get a 40-year mortgage in the UK?
Some UK lenders offer mortgage terms extending to 40 years, subject to their lending criteria, affordability assessment, the applicant's age and individual circumstances. Availability varies between lenders and mortgage products.
Is a 40-year mortgage cheaper each month?
For the same mortgage balance and interest rate, extending the repayment term will generally reduce the required monthly repayment. However, because the mortgage remains outstanding for longer, the total interest paid can be considerably higher.
Are 35-year mortgages becoming more common?
FCA Product Sales Data shows that regulated mortgage sales with terms of 35 years or more increased from 260,688 in 2021 to 318,839 in 2025.
How common are 30-year mortgages among younger borrowers?
The English Housing Survey 2024–25 found that 68% of mortgagor households aged 16–34 had mortgage terms of 30 years or more.
Is a 25-year mortgage better than a 40-year mortgage?
Neither mortgage term is automatically better. A shorter term will normally mean higher required monthly repayments but can reduce the overall amount of interest paid. A longer term can lower the required monthly payment but may increase the total cost of borrowing.
Can I shorten my mortgage term later?
Potentially. Depending on the mortgage, lender and your individual circumstances, you may be able to shorten the term, make overpayments or remortgage. Charges, affordability assessments and restrictions may apply.
Can a mortgage continue into retirement?
Potentially, subject to lender criteria and affordability. A lender may consider your age, anticipated retirement date, expected retirement income and other circumstances.
Should a first-time buyer choose the longest mortgage term available?
Not automatically. Monthly affordability is important, but the potential overall cost, age at the end of the mortgage, future income and other financial commitments should also be considered when deciding on a mortgage term.
Sources and further reading
- English Housing Survey 2024–25: Age Cohorts — Ministry of Housing, Communities and Local Government. View official government data
- Financial Conduct Authority — Information on mortgages with terms of 35 years or more, based on FCA Product Sales Data. View FCA data
- Financial Conduct Authority — FCA mortgage market analysis covering longer first-time buyer mortgage terms. View FCA analysis
- Office for National Statistics — Housing prices in Merton, including first-time buyer property prices. View ONS Merton housing data
- Sprive analysis — The 66% under-30 figure relates to analysis of more than 190,000 homeowners and is industry analysis rather than official government statistics.
More useful mortgage information
This article is provided for general information only and does not constitute personalised mortgage or financial advice.
The repayment examples are illustrative only and are not mortgage quotations. They assume a constant interest rate for the full term purely to demonstrate the effect of changing the repayment period. In practice, mortgage rates may change, borrowers may remortgage, make overpayments or alter their mortgage arrangements, and fees and charges may apply.
Mortgage availability, rates, affordability, maximum terms and lending criteria depend on the lender, mortgage product and individual circumstances.
The 66% statistic relates to third-party analysis by Sprive of more than 190,000 homeowners and should not be interpreted as representing all UK homeowners or mortgage borrowers under 30.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Unsure whether a 25, 30, 35 or 40-year mortgage is right for you?
Gordon Blair Financial Services can help you explore your mortgage options, compare different repayment terms and understand how the monthly payment and longer-term cost could differ based on your individual circumstances.
Book a Free Mortgage Appointment