Should I take out a 40-year mortgage? Expert explains pros and cons of longer home loans

• A longer-term mortgage could help you get on the housing ladder
• But it might end up costing you tens of thousands of pounds more in the long run
• And you could find yourself paying off your home loan well into your 70s or even your 80s

The standard term for a mortgage is still 25 years, but 30, 35 and 40-year home loans are becoming increasingly popular as younger homebuyers seek to reduce their monthly payments and boost their borrowing power.

But will you end up losing out in the long run, and will you still be paying off your mortgage well into your retirement?

A leading mortgage expert has urged homebuyers to be fully informed about 40-year home loans before committing to a deal.

More buyers taking out longer mortgages

Phillippa Jackson, operations director at Purplebricks Mortgages, has outlined the benefits and potential risks of these extended mortgage terms.

Last year, more than one in five first-time buyer mortgages were taken out with terms of 35 to 40 years – at least a decade longer than the traditional 25-year mortgage.

This trend suggests that many first-time buyers do not expect to have repaid their mortgage by the time they retire.

With the average UK house price now sitting at £271,000 – significantly higher in London and the South East – most first-time buyers face monthly repayments of around £1,150 on a 25-year term mortgage, assuming a 20 per cent deposit of £54,200.

Monthly repayments could fall by £230

For context, a Briton earning the average UK salary of £36,972 would be left with a post-tax income of approximately £2,511 per month – just over double the cost of a typical 25-year mortgage repayment.

This means many single buyers may be priced out of the market, although a couple both earning the average salary might expect a joint monthly income of around £5,022 – making them more likely to pass lenders' affordability assessments.

However, if the mortgage term is stretched to 40 years, monthly repayments could fall by over £230 to approximately £916 – potentially bringing homeownership within reach for more buyers.

Before committing to a mortgage that could extend beyond the age of 65, Phillippa Jackson has outlined the key advantages and disadvantages of long-term borrowing for buyers to consider.

The pros

Phillippa said: “Spreading repayments over an extended term makes monthly costs far more manageable, which can be a lifeline for first-time buyers or households on lower incomes.

“Lower monthly outgoings also help borrowers pass the affordability tests set by lenders, increasing the likelihood of mortgage approval.

“And buyers shouldn’t overlook the potential upside – as careers progress, earnings often rise. This could allow homeowners to make overpayments or even reduce their mortgage term later on.

“Moreover, over time, inflation and salary growth can make fixed monthly payments feel more affordable in real terms.”

The cons

Phillippa added: “Put simply, the longer the mortgage term, the more interest you’ll pay overall.

“Assuming a standard 20 per cent deposit, a typical loan of £216,800 on an average-priced UK home would cost approximately £271,000 in interest over 25 years at a 5 per cent rate – meaning total repayments could be close to double the purchase price.

“Extend that same loan over 40 years, and the total interest paid could rise to around £433,600 – effectively paying back double the amount borrowed.

“Buyers should be aware that such long-term borrowing may mean they don’t fully own their home until well into their 70s or even 80s, which could place a strain on finances in later life.

“While retirement may seem a long way off, it’s crucial to consider whether your pension income will be sufficient to cover mortgage payments – especially as failure to keep up with repayments could ultimately put your home at risk.

“Finally, extended mortgage terms can make it harder to remortgage or move house. If property prices fall, you may be left with limited equity due to the slower pace of capital repayment.”

🏠 Whether you’re planning to move or just curious what your home is worth, Purplebricks offers free valuations and fixed-fee selling support from local experts.

👉 Request a valuation or browse current listings in your area.