Nearly half of UK first-time buyers are taking out mortgages lasting 35 years or more, according to analysis by Heron Financial seen by Newspage. Among first-time buyer purchases on its books over the 12 months to October 2026, 48% opted for such terms.
Many of these loans extend beyond the age of 67, the age at which the state pension is currently being phased in. Buyers are stretching repayment periods to keep monthly costs manageable.
Pressure on monthly repayments
Previously, many first-time buyers relied on Help to Buy, where the equity loan had to be repaid alongside the mortgage, with charges kicking in from year six at 1.75% of the loan, rising annually thereafter.
Experts warn that if Prime Minister Andy Burnham's newly announced Your First Home scheme follows a similar model, buyers could face additional fees for even longer as a consequence of taking out a longer mortgage. The duration of the interest-free period and subsequent charges are expected to be confirmed in the Budget on October 28.
Industry experts say the increasing uptake of longer mortgage terms highlights the mounting financial pressure first-time buyers face in keeping their monthly repayments within reach.
Experts weigh in
Matt Coulson, founder of Rickmansworth-based Heron Financial, said: "It's becoming the norm, with nearly half now taking terms of 35 years or more. People don't do that casually. They stretch the term because it's the one lever that brings the monthly payment down to something they can afford.
"It's the clearest sign of where the squeeze really is: the monthly cost. The trade-off is real. A longer term lowers the payment now but costs far more interest over the life of the loan, and pushes borrowing deeper into your working life, often to retirement.
"Your First Home doesn't change that, and may even nudge it further: a smaller deposit means a bigger mortgage and a bigger mortgage leans even harder on a long term to stay affordable. On hidden charges, the one to watch is the equity loan. Under the old Help to Buy it was interest-free for five years and then started charging, so the cost arrives well after the headline deposit help. Factor the whole cost: the term, the interest and the equity loan repayment, well beyond the 2.5% to get in."
Long terms 'not to be feared'
Sara Palmer, chief distribution officer at Gen H, said 35-year mortgages could "make perfect sense". She added: "At Gen H, 37% of our first-time buyers have taken terms of at least 35 years. This rises to 64% for 30+ year terms. In this housing market, it's hard to imagine any other way for people to get on the ladder. It's absolutely true that a longer mortgage term can cost significantly more over the term of the mortgage.
"But the reality is that this may be worth it for families with no other path to homeownership, with Your First Home or without it. It is tempting to get wrapped up in the numbers, but if a first-time buyer is comfortable making the payments and owning is a priority, it may make perfect sense."
Martin Rayner, financial adviser at Compton Financial Services, said: "We recommend a 35-year term to virtually all first-time buyers. It keeps the committed monthly payment as low as possible, while most mortgages allow borrowers to overpay by up to 10% of the balance each year without penalty.
"A 35-year term is the safety net, not the repayment plan. That flexibility matters. Job security is not what it was for previous generations and most buyers will only fix for two or five years, after which they can change the term anyway. Your First Home should not fundamentally change that.
"The bigger issue is ensuring buyers understand the true cost of the equity loan. If the Government takes a 20% equity share, you are also giving away 20% of any increase in value. Borrow £40,000 against a £200,000 home and, if it rises to £250,000, you could have £50,000 to repay. If fees or high interest is charged after the interest-free period, buyers need to understand that cheap at the start does not necessarily mean cheap over the long term."
Repayment concerns
Richard Davidson, mortgage advisor at onlinemortgageadvisor.co.uk, said the real concern was whether buyers could pay off the debt quickly enough. He added: "Long terms are now the norm for many first-time buyers, but the real issue with Your First Home is not that anyone will run a 35-year mortgage to the end, it is that they may not be paying it down fast enough. Like Help to Buy, this equity loan is designed to be temporary, with the idea that once the interest-free period ends and while the fees are generally still lower than mortgage rates, owners have built up enough equity to fold the loan into their mortgage.
"Buyers also need to remember the loan is a share of the home, so if prices rise, what they owe rises with it. If it mirrors Help to Buy, the sensible plan is to repay at the five-year mark, or by year ten at the latest, and to run those numbers from day one, because my worry is that some buyers will see it, or be sold it, as free money rather than a debt that needs a clear exit."
Tracey Dixon, buy-to-let mortgage specialist and owner of Cardiff-based Pure Mortgage and Protection, said buyers needed clear illustrations of future costs and a realistic repayment plan from the outset. She said: "Getting the keys is only the first hurdle. Buyers also need a realistic way to repay the help that got them through the door. A longer mortgage term can make monthly payments more manageable, but it should be an individual recommendation, with the overall interest cost and retirement plans considered.
"My concern with any new equity loan scheme is what happens later. If buyers already need 35 or 40 years to make the mortgage affordable, how will they fund any additional charges and ultimately repay the equity loan?
"We should not build affordability around the hope that salaries and house prices will rise. Buyers need clear illustrations of future costs and a realistic repayment plan from the outset. Until the scheme's full terms are confirmed, a smaller deposit alone is not enough to judge its value. Success should mean sustainable homeownership, not simply more completed purchases."
