The mortgage term is the overall period over which you agree to repay your mortgage in full. In the UK, 25 years has traditionally been the standard term, but terms of 30 or even 35 years have become increasingly common — particularly among first-time buyers who need to keep monthly payments affordable.
Choosing a longer term reduces your monthly payments but increases the total amount of interest you pay over the life of the loan. Conversely, a shorter term means higher monthly payments but significantly less interest overall. For example, the difference between a 25-year and a 35-year term on a £200,000 mortgage can amount to tens of thousands of pounds in additional interest.
It is worth noting that the mortgage term is different from your initial product deal period. You might take a two-year fixed rate within a 25-year mortgage term. When that two-year deal ends, you would typically remortgage to a new deal rather than revert to your lender’s standard variable rate.
On a £200,000 repayment mortgage at 4.5%, a 25-year term gives monthly payments of about £1,112 and total interest of roughly £133,600. Extending to 35 years drops the monthly payment to around £898 but increases total interest to approximately £177,100 — an extra £43,500.
Key Points
- The standard UK mortgage term is 25 years, but 30- and 35-year terms are increasingly common
- A longer term means lower monthly payments but more interest paid overall
- A shorter term means higher monthly payments but less total interest
- Your mortgage term is separate from your initial deal period (e.g. a 2-year fix)
- You can often shorten your term when you remortgage if your finances allow