Brokers divided on 35-year+ mortgage terms: "like sticking a plaster on a broken bone"

ONE mortgage broker has warned borrowers against taking out mortgages with terms of 35+ years, saying ultra-long terms saddle first-time buyers with decades of debt, while another has said “there is definitely a place in the market for 35-40 year mortgages”.

Omer Mehmet, Managing Director at Welling-based Trinity Finance, said: “Stretching mortgages to 35 years is like sticking a plaster on a broken bone. It makes the numbers look nicer today, but leaves first-time buyers saddled with decades of debt and eye-watering lifetime costs."

He continued: "Instead of gimmicks that mask the problem, lenders and policymakers need to tackle the real issue — house prices that have sprinted far ahead of wages. To that end, we need to build more homes."

But Daniel Wyke, Managing Director at Corby-based Wyke Financial, believes longer terms can be a safe stepping stone if borrowers get proper advice, overpay and review the term at each remortgage.

He said: “35- and 40-year mortgage terms have been used as a mechanism for affordability for the past 10-15 years. While concerns regarding the length of debt and overall interest are valid, if managed properly, they really shouldn't be. As part of any good broker's first appointment, the pitfalls of longer terms should be explained. But so should the ability to overpay and review the term on remortgage. 

"The brokers in our firm work actively with our clients to help achieve a low-term mortgage as quickly as possible. Using a mixture of overpayment and term reductions, it has been possible to help clients move from a starting term of 35+ years to sub-20 in a short space of time.

"A dedicated broker should be looking beyond the initial transaction and forming a plan with a client that allows faster payback. As always, this is done on a case-by-case basis and market dependent, but a high term often allows the client to find their feet with other bills and commitments and then review things down the line.”

Other advisers said longer terms can be the difference between buying and staying stuck in rented, while stressing they are not a silver bullet.

According to Craig Fish, Director at London-based Lodestone Mortgages: “Ultra-long mortgages aren’t the big bad wolf they’re often made out to be. For younger buyers, stretching the term to 35 or even 40 years can be the difference between getting on the ladder or not. For older borrowers, lenders already cap terms by maximum age, so there are safeguards in place.

"The key point is this: mortgages are rarely ‘set and forget’ for decades. Most people review every 2-5 years, which creates regular opportunities to shorten the term or switch strategy. So yes, longer terms can ease affordability pressures today, but they’re not a silver bullet.

“The real fix lies in tackling the bigger issues: supply, wages, and house prices. Longer terms are just one useful tool in the box and not the whole solution.” 

Mike Staton, Director at Mansfield-based Staton Mortgages, warned that scrapping 35–40-year options would shut many would-be buyers out altogether.

He said: “There is definitely a place in the market for 35-40 year mortgages. Removing this as an option removes a viable pathway for somebody to get on the property ladder. There is no such thing as a bad mortgage, just bad advice. I would wager that the majority of people who fall foul of any mortgage deal, regardless of term, will have done so without taking mortgage advice from a professional.

"Having this option enables people to budget for moving into their first property, in the first years when renovation costs may be high. Reducing the monthly outgoing on your mortgage can offer some respite. However, a good mortgage advisor will revisit this customer at their next remortgage and look at opportunities to reduce the term and get their mortgage paid off early.

"Anybody who feels that a 35-40 year mortgage should be removed as an option seriously needs to give their head a shake and get with the current standard of living.”

Some argued the products highlight a deeper market dysfunction rather than being the problem in themselves. Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said: “35-40-year mortgages aren't evil but signal deeper market dysfunction. They help buyers access homes otherwise unaffordable, but lock them into decades of higher payments and slower wealth building.

“Rather than banning them, policymakers should address the underlying affordability causes while ensuring borrowers understand long-term costs. The real ‘time bomb’ isn't mortgages themselves—it's a market where such extremes are needed for basic homeownership.”

For many borrowers, longer terms are simply the only route onto the ladder right now, provided they keep the option to shorten later.

“Many borrowers have very limited options other than to take a longer mortgage term if they want to get on the property ladder. It is important that borrowers taking 35 or 40-year mortgages understand that it is possible to switch to shorter terms when they remortgage with their existing lenders or a new provider, or make overpayments to reduce the amount of interest they pay,” said Aaron Strutt, Product and Communications Director at London-based Trinity Financial.

And for very young buyers, repeated reviews can turn an ultra-long start into an early finish, says Mark Hosker, Mortgage Adviser at Bradford-based Cyborg Finance: “An 18-year-old taking out a 35-year repayment mortgage is a ticking clock to be a mortgage-free homeowner 13 years before their retirement. Since the average borrower will seek mortgage advice every two years, as their initial rate expires, that's 17 opportunities to review this with their adviser to become mortgage-free sooner as wages increase through a career."