Mortgage Term Length: Should You Choose 25, 30, or 35 Years?

The mortgage term — how long you take to repay — has a bigger impact on the total cost than the interest rate. A 25-year term is standard, but 30 and 35-year terms are increasingly common. Here's the math on why shorter is better.

The Numbers

On a £250,000 mortgage at 5.09%:

• 25 years: £1,479/month, £193,600 total interest.
• 30 years: £1,351/month, £236,400 total interest.
• 35 years: £1,253/month, £276,300 total interest.

The 35-year term saves £226/month compared to 25 years — but costs £82,700 more in interest over the life of the loan. You're trading £82,700 in long-term cost for £226 in monthly relief.

Why Banks Push Longer Terms

Longer terms make the mortgage look more affordable, which means you can borrow more — which means you can buy a more expensive property. The bank collects interest for an extra 5-10 years. It's a win for the bank and a loss for you.

The Hybrid Strategy

If you can't afford the 25-year payment, take the 30-year term but overpay to the 25-year level. You get the safety net of a lower required payment (if your income drops) with the economics of a shorter term. Use our Overpayment Calculator to see the numbers.