Mortgage costs over 25 years

by Aaron Strutt

Aug 01 2025

Is a 25-Year Mortgage Still Common in the UK?

Yes—traditionally, 25 years has been the standard mortgage term in the UK. Although high house prices and, more recently, higher borrowing costs are prompting more and more people to “go long” on their home loans.

Recent data:

• First-time buyers are buying homes now have mortgage terms lasting an average of 31 years as the affordability of homes remains a stretch. A decade ago, the average mortgage term for those buying a first home was 28 years, according to figures from banking trade body UK Finance.

• Nearly half of new mortgages at the end of 2023 had terms of 30 years or more, and about 20% of first‑time buyers opted for 35‑year terms. This is according to The Guardian.

So while 25-year terms remain common, longer terms (30–35 years) are becoming increasingly prevalent due to affordability pressures.

Can You Get 30- or 35-Year (or even Longer) Mortgages in the UK?

Yes. Many lenders now offer extended terms:

• Typical maximum terms go up to 40 years, with some specialist lenders offering 45 years.

Can Borrowers Make Overpayments?

Yes, absolutely:

• Many UK mortgages allow overpayments, letting you pay extra against the capital and either reduce the overall term or lower future monthly payments.

• A famous trick: take a longer-term (e.g., 30 years) mortgage, but purposefully overpay each month as if it were a 25‑year mortgage—this gives flexibility without increasing total cost, provided the interest rate is the same and there are no early repayment charges.

• However, lenders often limit overpayments to around 10% of the outstanding balance annually, and exceeding that may trigger Early Repayment Charges (ERCs) of up to 1–7%.

Does It Make Sense to Take a Longer Term?

Pros:

• Lower monthly payments, easing affordability—e.g., a £200,000 mortgage at 5.01% costs £1,170/month over 25 years, but just £1,010/month over 35 years—saving £160/month or nearly £9,600 over five years.

• It provides short-term relief, especially when house prices and interest rates are high.

• Most borrowers don’t stay in the same mortgage for the full term, so a longer initial term offers flexibility to remortgage or shorten later.

Cons:

• You end up paying substantially more interest overall. Example: for £200,000, you pay £351,103 over 25 years, but £424,473 over 35—a difference of £73,370.

• Longer mortgages may stretch into retirement, reducing financial flexibility and potentially impacting retirement planning.

• Potential age cap restrictions – some lenders disallow mortgages that extend beyond a certain age (often around 70).

Summary Table

For a Buyer in Islington via Trinity Financial

1. Estimate your monthly cost by plugging your loan amount, interest rate, and term (25 vs 30 vs 35 years) into a mortgage calculator.

2. Assume typical availability of extended terms—Trinity, as a broker, could likely source 30–35 year terms if needed.

3. Plan to overpay if affordable—this lets you keep flexibility while cutting down the mortgage duration.

4. Consider your retirement timeline—longer terms may outlast your working life; factor this into decisions.

5. Review options at every remortgage—as rates change or your income increases, switching to a shorter term could save you money in the long run.

Final Thought

Taking a 25-year mortgage remains common—but rising costs make 30–35 year (or longer) terms increasingly popular for affordability. Yes, you can overpay to reduce term or payments—but beware of limits and charges. It can make sense to stretch your term, especially short-term, but smart borrowers plan to overpay, remortgage, or downsize to reduce the total interest paid.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage