Mortgage Affordability
Affordability Myth #5: “Go for the longest mortgage term – it keeps payments low!”
2 minute read
Rana Miah | June 18, 2025 Share
It’s a common piece of advice, especially when you’re trying to keep your monthly costs down. Stretch the mortgage over 30 or 35 years, and boom – smaller monthly payments. Easy win, right?
Well… not always.
Why this sounds appealing
When you’re budgeting for a new home, the monthly number matters. So it’s easy to think: “If a longer term gets me a lower monthly payment, why wouldn’t I do that?”
But the catch is in how much interest you’ll end up paying over time.
The reality
Yes, longer mortgage terms mean smaller payments each month, but you’ll pay a lot more in interest over the full life of the loan. And because you’re paying off the loan more slowly, it takes longer to build up equity in your home.
Here’s how it adds up on a mortgage rate of 5% on £270,000 if it was fixed for 10 years
| Term | Monthly Payment | Total Paid | Interest Paid |
| 25 Years | £1,578.56 | £473,568 | £203,568 |
| 35 Years | £1,348.93 | £566,551 | £296,551 |
That’s nearly £100,000 more in interest just to reduce your monthly payments by around £230.
What to consider instead
It’s completely fine to prioritise affordability – your mortgage should fit your lifestyle. But if you can stretch a little more now, a shorter mortgage term can mean huge savings in the long run and help you become mortgage-free sooner.
Even shaving off 5 years can make a big difference.
Aisha and Ben both bought similar homes.
Aisha chose a 25-year mortgage, while Ben went with 35 years to keep his monthly payments lower.
Ten years in, Aisha has paid down more of her mortgage, built up more equity, and is on track to own her home outright a full decade before Ben – saving nearly £100,000 in interest along the way.
The takeaway?
Lower monthly payments might feel like a win now, but take a step back and look at the full picture.
Use our mortgage calculator to test different term lengths – and if you’re unsure what works best for your situation, speak to an advisor who can help you balance monthly comfort with long-term savings.
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