Mortgages: 40-year terms are becoming the norm – but watch out – The Guardian

Mortgages: 40-year terms are becoming the norm – but watch out – The Guardian

First-time buyers could end up paying a lot more – and not be mortgage-free until their 70s

As a 40-year mortgage becomes the norm beware how interest payable can pile up.

As a 40-year mortgage becomes the norm beware how interest payable can pile up.
Photograph: Alex Hinds/Alamy

Mortgages with a maximum term of 40 years are now becoming the norm, according to new data this week. However, with the average age of a first-time buyer standing at 32, that raises the prospect of a generation of homeowners not achieving mortgage-free status until they are in their 70s.

Latest research from the data experts at shows that 57% of the residential mortgage products currently available have a standard maximum term of up to 40 years – up from just under 36% in March 2014.

It provides more evidence that the traditional 25-year mortgage is increasingly becoming a thing of the past, particularly when it comes to first-timers.

Yorkshire building society this month became the latest big provider to increase its maximum term to 40 years.

By stretching the term, borrowers can reduce their monthly payments and are therefore more likely to meet banks’ strict affordability rules.

But there’s a big sting in the tail. Moneyfacts gives the example of a £250,000 repayment home loan with an interest rate of 2.5%.

Over 25 years, that equates to a monthly repayment of £1,121, and the total interest payable would be £86,463.

The same mortgage taken over 40 years would cut the monthly repayments to £824, but whack up the total interest to £145,733. That’s an additional £59,270.

Shaun Church, a director at mortgage broker Private Finance, says: “Continued efforts need to be made to ensure home ownership remains attainable early in adulthood to avoid jeopardising this generation’s financial security later in life.”

Darren Cook at Moneyfacts says an extended mortgage term may well go beyond pension age, “so it is imperative these borrowers consider their options and attempt to make provisions if their personal circumstances change”.


  1. I have recently started a website, the info you provide on this web site has helped me tremendously. Thanks for all of your time & work. “It is a great thing to know our vices.” by Cicero.

  2. Hi, Neat post. There’s an issue along with your web site in web explorer, would test this… IE nonetheless is the market chief and a good section of folks will miss your wonderful writing because of this problem.

  3. I simply want to tell you that I’m new to blogging and really liked you’re page. Almost certainly I’m likely to bookmark your blog . You actually have exceptional posts. Bless you for sharing with us your web-site.

  4. One more issue is that video games are normally serious in nature with the principal focus on learning rather than enjoyment. Although, there is an entertainment factor to keep children engaged, every game is frequently designed to develop a specific set of skills or curriculum, such as mathmatical or technology. Thanks for your write-up.

  5. You have mentioned very interesting points! ps nice internet site. “Great opportunities to help others seldom come, but small ones surround us every day.” by Sally Koch.

  6. you are really a good webmaster. The site loading speed is incredible. It sort of feels that you’re doing any distinctive trick. In addition, The contents are masterwork. you have performed a magnificent process on this topic!

  7. Thank you for any other great article. The place else may just anyone get that type of information in such a perfect method of writing? I’ve a presentation next week, and I’m at the look for such info.

  8. Hey! I just wanted to ask if you ever have any problems with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no data backup. Do you have any methods to protect against hackers?

  9. I enjoy you because of each of your efforts on this web page. Gloria enjoys carrying out investigation and it’s really obvious why. Most of us know all relating to the lively method you create good ideas via the web blog and even encourage contribution from people about this article then my girl is now discovering a whole lot. Take advantage of the rest of the year. You’re conducting a good job.

  10. Great goods from you, man. I’ve understand your stuff previous to and you are just too excellent. I really like what you have acquired here, certainly like what you’re stating and the way in which you say it. You make it enjoyable and you still take care of to keep it wise. I cant wait to read much more from you. This is actually a wonderful site.

  11. Whats Happening i am new to this, I stumbled upon this I’ve found It absolutely helpful and it has aided me out loads. I’m hoping to give a contribution & assist other users like its aided me. Good job.

  12. Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!

  13. you are actually a just right webmaster. The site loading velocity is amazing. It sort of feels that you are doing any unique trick. In addition, The contents are masterpiece. you have performed a wonderful job in this matter!

  14. My partner and I absolutely love your blog and find a lot of your post’s to be just what I’m looking for. can you offer guest writers to write content available for you? I wouldn’t mind composing a post or elaborating on most of the subjects you write in relation to here. Again, awesome site!

  15. I found your weblog site on google and examine just a few of your early posts. Proceed to maintain up the very good operate. I simply further up your RSS feed to my MSN News Reader. Seeking forward to reading more from you afterward!…

  16. Does your site have a contact page? I’m having problems locating it but, I’d like to send you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it expand over time.

  17. I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to construct my own blog and would like to know where u got this from. thank you

  18. My spouse and I absolutely love your blog and find most of your post’s to be exactly I’m looking for. Does one offer guest writers to write content in your case? I wouldn’t mind composing a post or elaborating on some of the subjects you write with regards to here. Again, awesome web log!

  19. Hiya! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My site looks weird when viewing from my apple iphone. I’m trying to find a template or plugin that might be able to fix this problem. If you have any recommendations, please share. Cheers!

  20. There are some fascinating time limits in this article but I don’t know if I see all of them heart to heart. There’s some validity but I will take maintain opinion till I look into it further. Good article , thanks and we wish extra! Added to FeedBurner as nicely

  21. Hiya, I am really glad I’ve found this info. Today bloggers publish only about gossips and net and this is really annoying. A good web site with interesting content, that’s what I need. Thank you for keeping this web-site, I’ll be visiting it. Do you do newsletters? Cant find it.

  22. I used to be very happy to search out this net-site.I wished to thanks on your time for this glorious read!! I undoubtedly having fun with every little little bit of it and I have you bookmarked to take a look at new stuff you blog post.

  23. Thanks for this article. I might also like to convey that it can possibly be hard when you’re in school and starting out to create a long credit ranking. There are many individuals who are just simply trying to survive and have a good or positive credit history are often a difficult thing to have.

  24. Just want to say your article is as amazing. The clearness to your put up is just nice and i could suppose you are knowledgeable in this subject. Fine along with your permission allow me to seize your feed to stay up to date with imminent post. Thank you 1,000,000 and please carry on the enjoyable work.

  25. It¡¦s actually a cool and useful piece of info. I¡¦m glad that you simply shared this useful information with us. Please keep us up to date like this. Thanks for sharing.

  26. Attractive section of content. I just stumbled upon your web site and in accession capital to assert that I get in fact enjoyed account your blog posts. Any way I will be subscribing to your feeds and even I achievement you access consistently rapidly.

  27. Hello there, just became alert to your blog through Google, and found that it is truly informative. I am gonna watch out for brussels. I will be grateful if you continue this in future. A lot of people will be benefited from your writing. Cheers!


Please enter your comment!
Please enter your name here