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The average mortgage term in the UK is 25 years, but what are your options if you need one spanning 30 years? Read on to find out how common 30-year mortgages are, what you need to know about them, and how we can help.
Can you get a 30-year mortgage?
Yes, absolutely. Although a typical mortgage term length in the UK would be 25 years, the vast majority of lenders will consider offering agreements spanning 30 years or more. In fact, a rising number of first-time buyers are opting for longer than average agreements now.
Only a small minority of mortgage lenders, such as Central Trust Limited, will turn you away outright if you need a 30-year mortgage. Others, however, may have additional criteria you need to meet if you are applying for an agreement covering more than 25 years.
A 30-year mortgage is a big commitment, so it pays to take professional advice before you apply for one. Our brokers specialise in longer term mortgages and can ensure you get the right advice about them and are matched with the lender best placed to offer you one.
What are the benefits of a mortgage this long?
The main benefits of a 30-year mortgage compared to one with a shorter term length are lower monthly payments. Because the debt is stretched across a longer period, you will pay less each month, potentially leaving you with more disposable income.
However, the trade-off here is that your mortgage will cost you more overall. This is because you will have a greater number of interest instalments to pay, and they will add up.
In addition to this, you will build up equity at a slower rate on a 30-year mortgage compared to a 25 year one, and it will take you longer to own your home outright.
Are the rates higher for 30-year mortgages?
Not usually. Interest rates 30-year mortgages are no different to one with a shorter term. The rate you qualify for will depend on the same factors as any other residential mortgage, namely your deposit amount, credit history and the overall strength of your application.
Although the rates are typically different on 30-year mortgages, the monthly and overall cost of their repayments can be, as we have already discussed in the previous section.
You can compare the latest rates and deals available for 30-year mortgages below or choose the option to jump into a free, no-obligation chat with one of our brokers:
Compare 30-year mortgage rates for FREE
Eligibility criteria
The lending criteria for a 30-year mortgage is largely the same as it is for residential mortgages of other lengths, but lenders will put greater scrutiny on your age.
This is because there are lenders who set a maximum age you can be at the end of the term, with 75 being typical. With this in mind, you will have fewer lenders and deals to choose from if you are applying for a 30-year mortgage at the age of 46 or over.
Your chances of mortgage approval will also be higher if you…
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Have enough deposit: 5% of the property’s value is the minimum you will need but putting down more can mean better rates and deals.
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Have clean credit: Not a mandatory requirement but you will stand a better chance of mortgage approval compared to an applicant with bad credit.
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Are buying a standard property: Anything with non-standard construction or unusual features might require a specialist mortgage lender.
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Can provide enough proof of income: This means at least three months’ bank statements and payslips if you’re employed, and 2-3 years’ accounts if you’re self-employed, although some mortgage lenders will accept less.
How much does a 30-year mortgage cost?
This will depend on the amount you borrow, the interest rate and the type of mortgage you choose, but to give a typical example a £200,000 mortgage with a 4% interest rate taken out on a capital repayment basis would cost £995 per month if taken over 30 years.
A mortgage taken out with these parameters would cost you £343,739 overall.
The table below shows how the cost of a 30-year mortgage compares to a 25 year one when taken out with a 4% interest rate on a capital repayment basis.
|
Mortgage Amount |
Monthly payments on a 25-year term |
Monthly payments on a 30-year term |
Overall Repayment (25-year term) |
Overall Repayment (30-year term) |
|
£528 |
£477 |
£158,351 |
£171,870 |
|
|
£1,056 |
£995 |
£316,702 |
£343,739 |
|
|
£1,584 |
£1,432 |
£475,053 |
£515,609 |
|
|
£2,111 |
£1,910 |
£633,404 |
£687,478 |
|
|
£2,639 |
£2,387 |
£791,755 |
£859,348 |
|
|
£3,167 |
£2,864 |
£950,106 |
£1,031,217 |
30-year mortgage calculator
You can use the calculator below to work out how much the repayments will be on your 30-year mortgage. This tool has automatically been set to calculate a mortgage with a 30-year term, so simply enter the amount you want to borrow to get started.
Who are the best lenders for 30-year mortgages?
Most lenders offer mortgages of up to 30 years or longer but the best ones to approach will depend on how old you are, as you will need to be mindful of the upper age caps some mortgage providers set for applicants at the end of the mortgage agreement.
This table shows examples of lenders who offer 30-year mortgages with flexible age limits:
|
Mortgage Lender |
Maximum Mortgage Term |
Age Limit (End of Term) |
|
40 years |
No maximum |
|
|
40 years |
80 years old |
|
|
35 years |
85 years old |
|
|
40 years |
80 years old |
|
|
40 years |
80 years old |
Why choose Teito for your mortgage needs?
On Teito, you can compare the latest rates for 30-year mortgages for free or speak to one of our expert brokers for help and guidance about your options.
Here are just some of the reasons people choose us for their mortgage needs:
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You can compare the latest rates from 90+ lenders
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Our brokers can access exclusive deals
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We are 5-star rated on leading review websites
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You can secure your agreement in principle in minutes
Ready to compare the latest rates and take advantage of a free, no-obligation chat with a broker who specialises in 30-year mortgages? Get started here.
FAQs
Yes. There are a wide range of lenders available if you need a 30-year mortgage at the age of 40. By the end of the mortgage term, you would be 70 years of age, which wouldn’t fall afoul of the age limits that most providers set, with the majority lending up to age 75.
You can even access most of the market at age 45, but from 46 onwards your options will begin to decrease as you will need to find a lender with flexible age caps.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.