Are 40-year mortgages becoming the new normal?

Are 40-year mortgages becoming the new normal?

Across the country, the average value for a home stands at £302,002 in March, according to Rightmove.

Darren Cook, finance expert at, said: “Historically, a standard mortgage term generally amounted to a period of 25 years, but most products are now available to be extended for a period of 40 years.

By extending their mortgage term, borrowers may be looking to reduce their monthly repayments and therefore are more likely to meet strict affordability requirements.

“Not only are the number of mortgages at a maximum term of 40 years increasing, but the number of products at max 25-year terms and 30-year terms are decreasing.

Between March 2014 and today, the number of 25-year maximum term mortgages has fallen by 152, now accounting for only 2.97 per cent of all residential products available. Meanwhile, the number of mortgages with a 30-year max term have dropped even more significantly, falling from 606 to 140 over the period. 

“A longer-term mortgage may reduce the monthly repayments of a mortgage, however, the additional interest that accumulates over an extended mortgage term could be considerable.

A £200,000 repayment mortgage at a rate of 2.50 per cent over 25 years equates to a monthly repayment of £897.23 and total interest payable would be £69,169 over the term.

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