25 Apr 2019

Nearly half of homebuyers would consider taking a 40-year mortgage

Nearly half of homebuyers would consider taking a 40-year mortgage

Nearly half of homebuyers would consider taking a 40-year mortgage to get onto the property ladder.

Santander Mortgages also says that they could save £178,500 - 77% of the average UK house price - by acquiring a home rather than renting over the four decades.

With 67% of Britons saying they see renting as just a way of lining someone else's pockets, Santander has extended its mortgage terms to up to 40 years, giving more customers a way to manage the cost of buying a home and potentially break the costly renting cycle.

Help getting onto the ladder

The bank's findings show that a 40-year mortgage could help 3.25million more first-time buyers get onto the property ladder. These are people who would otherwise not be able to afford the monthly repayments associated with a 25-year mortgage based on their salaries and living costs.

Santander says the cost of an average monthly repayment for a 25-year mortgage falls by £263 when spread over 40 years.

However, nearly a quarter of buyers didn't realise that spreading a mortgage over a longer term would mean lower monthly repayments.

Many people would look to reduce the term of a 40-year mortgage later down the line.

The bank says almost a quarter of homebuyers would seek to remortgage to a shorter-term if their finances improved, 37% would pay extra whenever they could to reduce the length and a fifth would look to remortgage to a shorter term when they moved house.


Miguel Sard, managing director of mortgages at Santander UK, said: "The possibility of owning a property may seem like a distant dream to some aspiring buyers, many of whom have found themselves locked in a 'rent trap' and unable to get onto the property ladder.

"By offering buyers the option of a longer-term mortgage, our aim is to address some of the affordability restrictions they face and support them in buying a home with more manageable monthly repayments."

Santander's research estimates that around 15million people are looking to purchase a property in the next five years, with data suggesting that first-time buyers are responsible for over half of all property transactions.

Financial services company Moneyfacts says that, at one time, mortgages typically had a standard maximum term of 25 years, but in the days of stricter affordability rules - not to mention higher house prices - those terms can now be extended for much longer than before. 

Its latest research shows that 50.89% of all residential mortgage products currently available have a standard maximum mortgage term of up to 40 years - up from 35.93% five years ago, highlighting the changing landscape.

There are currently 2,604 mortgages with a maximum term of 40 years compared with 1,096 in March 2014.

Find your best deal

With access to thousands of mortgage products (including a number exclusive to us!), Aberdein Considine can find the perfect deal for you, free of charge.

Click here to speak to one of our advisers.

Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Tick this box if you wish to receive news and offers from Aberdein Considine. By doing, you indicate your consent to receiving targeted email marketing messages from us. On each occasion that we contact you in the future, you will be given the option to opt-out from receiving such messages. You may also email marketing@acandco.com at any time to opt-out.

The personal information that you provide to us in this form will only ever be used by Aberdein Considine (as the Data Controller) for the following specifically defined purposes:

  • email you content that you have requested from us
  • with your consent, occasionally email you with targeted information regarding our service offerings
  • continually honour any opt-out request you submit in the future
  • comply with any of our legal and/or regulatory obligations