In this brief guide, we are going to talk about 35-year mortgages.

35-year mortgages have somewhat crept back into fashion due to the fact that the UK government remove a loophole which stopped help to buy borrowers from taking a remortgage on their mortgage which was more than 25 years.

The removal of this policy now means that after the introductory fixed-rate period ends, borrowers who have help to buy mortgages will now be able to take advantage of a35 year mortgage and in essence usher in lower monthly mortgage repayments.

What are 35-year mortgages?

35 yeara mortgages are just exactly as they sound. They are mortgages which have a term of 35 years.

Taking a 35-year mortgage has its pros and cons. 

The obvious benefit of a 35-year mortgage is that your monthly mortgage repayments will be much lower as you spread the mortgage balance out over a much longer term.

Should you take out a 35-year mortgage?

The obvious benefits of a 35 year mortgage are that you will be able to keep your monthly mortgage repayments down but this also means you will be repaying the mortgage balance for a much longer period and hence incurring interest over a much longer period.

On the other hand, there aren’t a lot of mortgage lenders who offer 35 year mortgages and this means you may end up paying much higher mortgage rates.

Although 35-year mortgages sound great, you will still need to pass the mortgage lenders mortgage affordability checks and this checks will be harder due to the fact that you will be paying off the mortgage for a much longer period.

You may also find that mortgage lenders will not be keen on offering 35 year mortgages to people with bad credit or complex incomes which may be unreliable.

Another main issue with 35 year mortgages is that you will end up paying for the mortgage far past your retirement and you may struggle to keep up on the monthly mortgage repayments and end up losing your home through a home repossession.

If you are considering taking out a 35 year mortgage then you may want to ask the mortgage lender if the mortgage will allow you to overpay it or if it has any flexible features. 

This may be vital in case you find your self struggling to keep up with the monthly mortgage repayments in the future or you want to reduce your mortgage balance by overpaying and hence reduce the amount of interest charged on your mortgage.

Example of a 35 year mortgage in comparison to a 25 yeaear mortgage.

Mortgage rate3.5%3.5%
Amount borrowed£250,000£250,00
Term25 year35 years
Monthly mortgage repayment£1252£1034

Which mortgage lenders offer 35 year mortgages?

A lot of mortgage lenders offer 35 year mortgages, with some mortgage lenders even offeringas high as 40 year mortgages.

As of last check, these are the mortgage lenders who offer 35 year mortgages:

AA Mortgages
Atom Bank
Bank of Ireland
Chorley & District
Earl Shilton
First Direct
First Trust
Hanley Economic
Hinckley & Rugby
Kent Reliance
Leek United
Melton Mowbray
Metro Bank
Post Office
Sainsbury’s Bank
Scottish Building Society
Scottish Widows
Tesco Bank
Tipton & Coseley
Ulster Bank
Virgin Money
West Brom
Vida Homeloans
Yorkshire Building Society

Use a mortgage calculator

If you want to see what the monthly mortgage repayments on a 35-year mortgage will be you may want to use a mortgage calculator.

You should remember that the data displayed by the mortgage calculator are in no way a reflection of your mortgage affordability.

Use a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we talked about 35-year mortgages.

If you have any comments or questions please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.