A 35-year mortgage requires you to repay the loan over a 35-year term. The longer your mortgage term, the lower your monthly payments will be.
In the past, people typically took out mortgages for 25 years. But high house prices and affordability constraints mean more people are taking out long-term mortgages. Up to 40 years in some cases, to make them more affordable.
Always remember: Your home may be repossessed if you do not keep up repayments on your mortgage.
Are 35 year mortgages in demand?
According to data analysis by online mortgage broker Better, demand for 35-year mortgages increased by 75% during the stamp duty holiday.
Trussle studied data from the Financial Conduct Authority about mortgages taken out between July 2020 and June 2021. During this period, a record 63,158 first-time buyers chose 35-year mortgages, marking a 75% year-on-year increase.
Taking out a 35 year mortgage will make your monthly repayments more affordable in the short term, but you will repay more in total over the course of your mortgage.
To get the best idea of your mortgage options and what mortgage is right for you it’s always worth speaking to a mortgage adviser. Our preferred mortgage adviser offers a free mortgage in principle that you could get instantly.
They also offer fee-free advice and have access to over 12,000 deals from 90 lenders.
Always remember: Your home may be repossessed if you do not keep up repayments on your mortgage.
How much does a 35 year mortgage cost?
Taking out a 35 year mortgage instead of a 25 year mortgage will mean lower monthly payments. However, it will mean you pay more on your mortgage overall.
For example, if you took out a £200,000 mortgage with an interest rate of 2% over 25 years on a repayment basis. You’d repay £848 a month and a total of £254,400 over 25 years.
If you repaid the same mortgage over 35 years, your monthly payments would drop to £663 a month. But your total cost over 35 years would be £278,460, equating to £24,060 more.
Do banks offer a 35 year mortgage?
Mortgage lenders typically offer maximum terms of 35 or 40 years, often referring to these as long term fixed rate mortgages. Depending on factors like your age or job, and whether you are paying into a pension when applying.
However, most lenders will have a maximum age the borrower can be when the mortgage ends. This is normally 70 or 75, or your predicted retirement age. Your age can affect your eligibility for a 35-year mortgage.
For instance, if you are 30 years old and secure a 35-year mortgage, you will complete the payments at age 65. This will generally be acceptable to lenders.
But if you are 40 and considering taking out a 35 year mortgage, you’ll be 75 at the end of the term. Not all mortgage lenders will offer you a mortgage as this could be over their maximum age limit. In general, the younger you are the easier it will be to take out a longer-term mortgage.
If you are a homeowner and are over 55 years old, then a retirement interest only mortgage might be of interest to you.
To get the best idea of your mortgage options and like what mortgage can you afford and what mortgage is right for you, it’s worth speaking to a mortgage adviser. We can help with that.
Get a decision on your mortgage from submission of your mortgage application via our trusted mortgage advisers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Should I pay off my mortgage before I retire?
Ideally you should aim to pay off your mortgage before you retire.
Mortgage lenders aren’t keen for people to still be paying their mortgage in later life. As mortgage payments may not be affordable on lower pension income.
Even if you can get accepted for a mortgage that runs into your retirement. Paying it could impact your standard of living in retirement.
Should I take out a 35 year mortgage?
If you need to take out a 35 year mortgage to make a home loan affordable, you should try to make overpayments where possible.
For example, you might be able to afford to pay more each month as you work your way up the career ladder and earn more. Alternatively, you may receive an inheritance or bonus which would enable you to pay off a lump sum on your mortgage this could be subject to early repayment charges depending on the deal you take out.
Either of these courses of action would enable you to speak to your lender about shortening your mortgage term. Another option is to reassess your mortgage term when you remortgage.
Ultimately, when choosing a mortgage term, you need to strike the right balance between affordable monthly payments and not paying off your home loan for longer than necessary.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Last Updated: January 15th, 2024
