Mortgage Term Calculator UK 2025 | Free Comparison Tool

Compare Mortgage Terms

Enter your mortgage details and compare different term lengths to see their impact on payments. Our calculator shows you the exact monthly payment difference, total cost over each term, and highlights the trade-offs between lower monthly payments and total interest savings with clear visual indicators.

Loan Amount (£)

Interest Rate (%)

First Term (years)

Second Term (years)

UK Mortgage Term Options

Common UK Terms: Most lenders offer 15, 20, 25, and 30-year terms, with 25 years being the traditional standard. Some lenders extend to 35-40 years for affordability.

The Trade-off: Shorter terms mean higher monthly payments but significantly lower total interest. Longer terms reduce monthly payments but increase total cost substantially.

Age Considerations: Most lenders require mortgages to be repaid by age 70-75, which may limit term options for older borrowers.

Flexibility: You can often change your term when remortgaging or through your existing lender, subject to affordability checks.

Term Selection Tips

Popular UK mortgage terms:

25 years (standard)
30 years (lower payments)
35 years (maximum for most)
15-20 years (faster payoff)

Term Selection Strategies

Budget-First Approach: Use our affordability calculator to determine maximum monthly payments, then choose the shortest term you can afford.
Total Cost Focus: If minimizing total interest is your priority, choose the shortest term possible while maintaining financial flexibility for emergencies.
Cash Flow Strategy: Longer terms free up monthly cash flow for investments, but ensure potential returns exceed mortgage interest rates.
Hybrid Approach: Start with a longer term for affordability, then use overpayments to effectively reduce the term when finances improve.
Life Stage Considerations: Younger borrowers might prefer shorter terms to be mortgage-free before retirement, while families might need longer terms for affordability.

Related Calculators

How to Use This Mortgage Term Calculator

Follow these 4 simple steps to compare different mortgage terms and find the optimal balance between monthly affordability and total interest costs for your UK mortgage.

Enter Your Mortgage Amount and Interest Rate

Start by entering your mortgage loan amount (e.g., £200,000) and current or expected interest rate (e.g., 5.0%). The mortgage amount is the total you're borrowing, not the property value. For example, if you're buying a £250,000 property with a £50,000 deposit, your mortgage amount is £200,000. The interest rate should be your actual mortgage rate or the rate you're considering. UK mortgage rates in October 2025 typically range from 4.0-6.5% depending on LTV, deposit size, and product type (fixed vs tracker).

💡 Rate Tip: Use your actual mortgage rate if you have an offer, or use current market rates for planning. Lower LTV (60-75%) = better rates (4.0-5.0%), higher LTV (80-95%) = higher rates (5.0-6.5%). Fixed rates (2-5 years) offer stability, tracker rates follow Bank of England base rate. Use our Interest Rates Calculator to explore different rate scenarios.

Select Your First Mortgage Term

Choose your first mortgage term to compare (e.g., 25 years). In the UK, the traditional standard is 25 years, but terms now range from 5 to 40 years depending on lender policies and your circumstances. Common UK mortgage terms include: 15 years (faster payoff, higher payments), 20 years (balanced approach), 25 years (traditional standard), 30 years (lower payments, more interest), and 35 years (maximum affordability, highest total cost). Most lenders require mortgages to be repaid by age 70-75, which may limit term options for older borrowers.

⚠️ Age Restrictions: Most UK lenders require mortgages to be repaid by age 70-75 (some extend to 80-85). If you're 45 years old, a 30-year term would end at age 75, which may be acceptable, but a 35-year term ending at age 80 might be rejected or require additional affordability checks. Younger borrowers (under 40) have more flexibility to choose longer terms, while older borrowers (50+) may be limited to shorter terms to meet age requirements.

Select Your Second Mortgage Term for Comparison

Choose a second mortgage term to compare against your first choice (e.g., 30 years). This side-by-side comparison helps you understand the trade-offs between different term lengths. For example, comparing 25 years vs 30 years shows you'll save £95/month with the 30-year term but pay £35,940 more in total interest over the mortgage lifetime. Comparing 15 years vs 25 years shows you'll pay £413/month more with the 15-year term but save £65,940 in total interest. The calculator instantly shows monthly payment differences, total cost differences, and total interest saved/extra.

💡 Comparison Tip: Compare terms that are 5-10 years apart for meaningful differences. Popular comparisons: 25 vs 30 years (affordability focus), 20 vs 25 years (balanced approach), 15 vs 25 years (total cost focus). Each additional 5 years typically reduces monthly payments by £50-150 but adds £20,000-40,000 in total interest on a £200,000 mortgage at 5% interest. Use multiple comparisons to find your optimal term.

Review Your Term Comparison Results

Click "Compare Terms" to view comprehensive results including: (1) Monthly Payment for each term (e.g., Term 1: £1,169/month, Term 2: £1,074/month), (2) Total Cost for each term (e.g., Term 1: £350,700, Term 2: £386,640), (3) Monthly Payment Difference (e.g., £95/month savings with longer term), (4) Total Cost Difference (e.g., £35,940 extra with longer term), (5) Total Interest Saved/Extra (e.g., £35,940 extra interest with 30 years vs 25 years), (6) Years Saved/Extended (e.g., 5 years longer with 30-year term). Use these metrics to make an informed decision that balances your current budget constraints with your long-term financial goals.

✅ Decision Framework: Choose Shorter Term (15-20 years) if: You can afford higher monthly payments (£1,300-1,600/month on £200k), want to be mortgage-free sooner, prioritize total interest savings (£65,000-85,000 saved vs 25 years). Choose Standard Term (25 years) if: You want balanced monthly payments (£1,169/month on £200k), traditional UK standard, moderate total interest. Choose Longer Term (30-35 years) if: You need lower monthly payments (£1,006-1,074/month on £200k), prioritize current affordability, plan to make overpayments later. Consider hybrid approach: longer term for affordability + overpayments to reduce effective term.

Important Mortgage Term Selection Reminders

The Trade-Off: Shorter terms mean higher monthly payments but dramatically lower total interest costs. Longer terms reduce monthly payments but significantly increase total amount paid. Each additional 5 years typically reduces monthly payments by £50-150 but adds £20,000-40,000 in total interest on a £200,000 mortgage at 5%.
Age Restrictions: Most UK lenders require mortgages to be repaid by age 70-75 (some extend to 80-85). If you're 45 years old, a 30-year term ending at age 75 may be acceptable, but a 35-year term ending at age 80 might be rejected. Plan your term to meet lender age requirements.
Affordability First: Use our Affordability Calculator to determine maximum monthly payments you can afford, then choose the shortest term that fits your budget. Don't overstretch on monthly payments to achieve a shorter term if it leaves no financial buffer for emergencies.
Flexibility Through Overpayments: Consider choosing a longer term for affordability, then making overpayments when finances improve. Most UK lenders allow 10% annual overpayments without penalties. Use our Overpayment Calculator to see how extra payments can effectively reduce your term and save interest.
Professional Advice: This calculator provides term comparison estimates only. For personalized advice on optimal term selection based on your age, income, financial goals, and circumstances, consult FCA-regulated mortgage advisors who can assess your full financial situation and recommend appropriate terms.

FCA Compliance Notice

This calculator provides mortgage term comparison estimates for informational purposes only. It does not constitute financial, mortgage, or investment advice. Actual mortgage terms available to you depend on individual circumstances including age, income, credit history, property value, loan-to-value ratio, and lender policies. Most UK lenders require mortgages to be repaid by age 70-75 (some extend to 80-85), which may limit term options for older borrowers. Lenders assess affordability based on income multiples (typically 4-4.5x annual income), monthly debt-to-income ratios, and stress testing at higher interest rates (typically +3% above actual rate). Choosing a longer term reduces monthly payments but significantly increases total interest costs over the mortgage lifetime. Shorter terms require higher monthly payments but result in substantial interest savings and faster equity building. The optimal term depends on your current budget, long-term financial goals, age, retirement plans, and risk tolerance. Consider flexibility through overpayment options (most lenders allow 10% annual overpayments without penalties) which can effectively reduce your term while maintaining affordability. Interest rates, lender policies, and mortgage products can change frequently. Always obtain personalized quotes from multiple lenders and consult FCA-regulated mortgage advisors for professional guidance on term selection based on your full financial circumstances. MortgagePro.uk is a comparison tool and not a financial advisor, mortgage lender, or mortgage broker.

Complete Guide to UK Mortgage Terms 2025

Understanding mortgage term options is crucial for balancing monthly affordability with long-term costs. Learn how term length affects your payments and total interest.

How Mortgage Term Length Affects Your Costs

Your mortgage term is the number of years over which you'll repay your loan. In the UK, the traditional standard is 25 years, but terms now range from 5 to 40 years depending on lender policies and your circumstances. The term you choose creates a fundamental trade-off: shorter terms mean higher monthly payments but dramatically lower total interest costs, while longer terms reduce monthly payments but significantly increase the total amount you'll pay over the mortgage lifetime.

This trade-off exists because with longer terms, you're paying interest on the outstanding balance for more years. Even though monthly payments are lower, the cumulative interest over 30-35 years far exceeds what you'd pay over 15-20 years. Additionally, with shorter terms, you pay down the capital faster, which reduces the balance on which interest is calculated more quickly, creating a compounding savings effect.

Understanding this relationship is essential for making an informed decision that balances your current budget constraints with your long-term financial goals. Many borrowers focus solely on monthly affordability, but considering total cost can lead to significant savings if you can afford slightly higher payments.

UK Mortgage Term Comparison: Real Examples

See exactly how different terms affect monthly payments and total costs on a £200,000 mortgage at 5% interest:

Term Length	Monthly Payment	Total Interest	Total Cost
15 years ⭐	£1,582/month	£84,760	£284,760
20 years	£1,320/month	£116,800	£316,800
25 years (standard)	£1,169/month	£150,700	£350,700
30 years	£1,074/month	£186,640	£386,640
35 years ⚠️	£1,006/month	£222,520	£422,520

Key Insight: Choosing 15 years instead of 35 years saves £137,760 in interest (£422,520 - £284,760) but costs £576/month more (£1,582 - £1,006). That's a 48% reduction in total cost for a 57% increase in monthly payment.

Monthly Payment Reduction: Each additional 5 years typically reduces monthly payments by £50-150. From 25 to 30 years saves £95/month but costs £35,940 extra in interest over the mortgage lifetime.

Term Comparison by Loan Amount

See how different loan amounts affect the monthly payment and interest savings across terms (at 5% interest):

Loan Amount	15 Years	25 Years	30 Years	Interest Saved (15 vs 30)
£150,000	£1,186/mo	£877/mo	£805/mo	£76,410
£200,000	£1,582/mo	£1,169/mo	£1,074/mo	£101,880
£250,000	£1,977/mo	£1,461/mo	£1,342/mo	£127,350
£300,000	£2,373/mo	£1,754/mo	£1,611/mo	£152,820
£400,000	£3,164/mo	£2,339/mo	£2,148/mo	£203,760

Savings Scale with Loan Size: The interest savings from shorter terms increase proportionally with loan amount. On £400,000, choosing 15 years over 30 years saves £203,760 - enough to buy a property outright in many UK regions.

Strategies for Choosing Your Optimal Term

1. Affordability-First Approach

Start with your maximum comfortable monthly payment using our affordability calculator, then choose the shortest term that fits. This balances current budget with long-term savings.

2. Total Cost Minimization

If minimizing total interest is your priority, choose the shortest term you can afford while maintaining a 3-6 month emergency fund. The interest savings often exceed investment returns.

3. Flexibility Strategy

Choose a longer term for lower contractual payments, then make regular overpayments (up to 10% annually penalty-free). This provides a safety net if income drops while still reducing total interest.

4. Life Stage Alignment

Younger borrowers (20s-30s) can choose shorter terms to be mortgage-free before retirement. Older borrowers may need longer terms due to lender age limits (typically 70-75 at mortgage end).

5. Income Growth Planning

If you expect significant salary increases (career progression, promotions), start with a manageable term then remortgage to a shorter term in 2-5 years when you can afford higher payments.

6. Property Plans Consideration

If you plan to move within 5-10 years, longer terms reduce monthly costs without the full long-term interest penalty. You'll remortgage or sell before the term ends anyway.

Mortgage Term FAQs

Essential information about UK mortgage terms and their impact on your finances

What's the most common mortgage term in the UK?

The most common mortgage term in the UK is 25 years, which has been the traditional standard for decades. However, average terms are increasing - many first-time buyers now choose 30-35 year terms for affordability, while some lenders offer up to 40 years. According to UK Finance data, the average first-time buyer term is now around 30 years, compared to 25 years a decade ago. Your optimal term depends on your age (most lenders require repayment by 70-75), income stability, and whether you prioritize lower monthly payments or minimizing total interest costs.

Should I choose a shorter or longer mortgage term?

Shorter terms (15-20 years) mean higher monthly payments but significantly lower total interest - for example, a £200,000 mortgage at 5% costs £1,582/month over 15 years with £84,760 total interest, versus £1,074/month over 30 years but £186,640 total interest (a £101,880 difference). Choose shorter terms if you can afford higher payments and want to be mortgage-free sooner. Choose longer terms if you need lower monthly payments for affordability, have other investment priorities, or want financial flexibility. Many borrowers choose longer terms initially, then use overpayments to effectively reduce the term when their income increases.

Can I change my mortgage term later?

Yes, you can change your mortgage term in several ways: (1) When remortgaging to a new lender - this is the most common time to adjust your term, (2) Through your existing lender via a product transfer - many lenders allow term changes when switching to a new rate, (3) By requesting a formal term extension or reduction - subject to affordability checks and potentially arrangement fees. Extending your term reduces monthly payments but increases total interest, while reducing your term increases monthly payments but saves interest. Some lenders allow multiple term changes during the mortgage lifetime, while others may charge fees or have restrictions.

How much does mortgage term length affect monthly payments?

Term length has a dramatic impact on monthly payments. Using a £200,000 mortgage at 5% as an example: 15 years = £1,582/month, 20 years = £1,320/month (£262 less), 25 years = £1,169/month (£413 less than 15 years), 30 years = £1,074/month (£508 less than 15 years), 35 years = £1,006/month (£576 less than 15 years). Each additional 5 years typically reduces monthly payments by £50-150 depending on the loan amount and rate. However, longer terms mean paying interest for more years, significantly increasing total cost despite lower monthly payments.

What's the maximum mortgage term available in the UK?

Most UK lenders offer maximum terms of 35-40 years, though availability depends on your age and circumstances. The key constraint is that most lenders require mortgages to be fully repaid by age 70-75 (some extend to 80-85 for certain products). For example, if you're 35 and your lender's maximum age is 75, your maximum term would be 40 years. First-time buyers in their 20s-30s can typically access the longest terms, while older borrowers face shorter maximum terms. Some specialist lenders offer interest-only options or retirement interest-only mortgages (RIOs) for older borrowers, but these work differently from standard repayment mortgages.

How much interest will I save with a shorter mortgage term?

Interest savings from shorter terms are substantial. On a £200,000 mortgage at 5%: 15 years = £84,760 total interest, 20 years = £116,800 (£32,040 more), 25 years = £150,700 (£65,940 more than 15 years), 30 years = £186,640 (£101,880 more), 35 years = £222,520 (£137,760 more). The savings increase with larger mortgages - on £300,000, choosing 15 years over 30 years saves approximately £152,820 in interest. Even reducing from 30 to 25 years saves around £35,940. These savings occur because you're paying interest on the outstanding balance for fewer years, and you pay down the capital faster with higher monthly payments.

Is it better to choose a longer term and overpay?

Choosing a longer term with overpayments offers flexibility but requires discipline. Advantages: (1) Lower contractual monthly payment provides a safety net if income drops, (2) You can adjust overpayments based on your financial situation, (3) Easier to pass affordability checks initially. Disadvantages: (1) Requires self-discipline to maintain overpayments, (2) Most lenders limit overpayments to 10% annually without penalties, (3) You might be tempted to skip overpayments for non-essential spending. This strategy works well if you have variable income, anticipate salary increases, or want financial flexibility. However, if you're certain you can afford higher payments, a shorter term enforces the discipline and guarantees the interest savings.

How does my age affect mortgage term options?

Age is a critical factor in mortgage term selection because lenders typically require full repayment by age 70-75 (some extend to 80-85). Examples: Age 25 with max age 75 = up to 50-year term (though most lenders cap at 35-40 years), Age 35 with max age 75 = up to 40-year term, Age 45 with max age 75 = up to 30-year term, Age 55 with max age 75 = up to 20-year term. Older borrowers face higher monthly payments due to shorter available terms, which can affect affordability. Some lenders offer more flexibility for older borrowers with strong incomes or significant assets. Retirement interest-only mortgages (RIOs) are available for those who can't meet standard repayment mortgage criteria due to age, though these require interest-only payments with the capital repaid from the property sale.

UK Mortgage Term Calculator 2025