Rising property prices have left many aspiring homeowners struggling to get on the property ladder. If you’re in this situation, you might consider taking out a so-called “ultra-long mortgage” that you repay over 30 to 40 years.
Traditionally, first-time buyers have taken out a mortgage with a 25-year term. A combination of factors, including property prices, means this isn’t affordable for some buyers. As a solution, more buyers are choosing to repay their mortgages over a longer time frame.
An FTAdviser article (25 August 2026) suggests 66% of mortgage holders under the age of 30 have mortgage terms of between 30 and 40 years.
If you’re facing affordability challenges, an ultra-long mortgage could be a useful option to assess. You should note that mortgage lenders may set a maximum age limit for when the mortgage will end, often linked to retirement age, which may affect your eligibility for a longer mortgage term.
An ultra-long mortgage could reduce your monthly repayments
As you’ll be spreading repayments over a longer time frame, your monthly outgoings would fall if you chose an ultra-long mortgage. This could help you manage your monthly budget.
Imagine you have a £200,000 repayment mortgage with an interest rate of 4.5%. With a mortgage term of:
- 25 years, your monthly repayment would be £1,111
- 40 years, your monthly repayment would be £899.
In this scenario, your monthly repayment would be more than £200 lower by making repayments over 40 years.
When reviewing your mortgage application, lenders will usually assess how affordable the repayments will be, including if interest rates increase. As a result, by lowering the monthly repayment by opting for a longer mortgage term, you could increase the likelihood that the mortgage will be affordable under the lender’s assessment.
A longer mortgage term may increase the cost of borrowing
Assuming you have a repayment mortgage, each month, your repayment will cover the interest charged and reduce the outstanding balance. As you’ll be making these repayments for longer, the total amount of interest you pay could rise.
Referring back to the earlier scenario, where you have a £200,000 repayment mortgage with an interest rate of 4.5%, you’d pay:
- £133,370 in interest over the full mortgage term on the 25-year option
- £231,348 in interest over the full mortgage term on the 40-year option.
In this case, by choosing an ultra-long mortgage, you’d pay almost £100,000 more in interest. As a result, if you can afford to take out a mortgage with a shorter term, it could make financial sense to do so when you consider the longer-term cost.
How to manage the cost of borrowing when you choose an ultra-long mortgage
If you take out an ultra-long mortgage as a first-time buyer, there are steps you could take to reduce the amount of interest you pay.
Shop around to find a competitive mortgage deal
The interest rate you pay will impact your repayments and total cost of borrowing. The interest rate you’re offered may vary between lenders, so exploring different options could help you reduce your borrowing costs. As mortgage advisers, we’re here to help you understand your needs and assess different options.
Make mortgage overpayments
When you overpay your mortgage, the additional payment reduces your outstanding balance. This could help you become mortgage-free sooner and reduce the total cost of borrowing. You may be able to make regular or one-off overpayments.
Overpaying may be a good option if you want flexibility, as you’ll be in control of when additional payments are made. So, if you were making regular overpayments and had an unexpected bill, you could pause them.
Keep in mind that an early repayment charge (ERC) may be applied when making overpayments. Some mortgage deals allow you to overpay up to 10% of the outstanding balance each year without incurring an ERC, but you should check the terms of your mortgage deal.
Shorten the mortgage term in the future
Choosing an ultra-long mortgage as a first-time buyer doesn’t mean you have to stick to this time frame.
When your mortgage deal expires, it’s a good time to reassess your financial position. When applying for a new mortgage deal, you could choose to shorten the term if it’s affordable. Again, this could mean you become mortgage-free sooner and pay less interest overall.
Contact us
If you’d like to talk about your mortgage needs and whether an ultra-long mortgage term could be suitable for you, please contact us.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
