Business · Economy · 15 hrs ago
Nearly half of first-time buyers take mortgages of 35 years or more
Nearly half of first-time buyers in Heron Financial’s figures took out mortgages lasting 35 years or more in the year to October 2026.
The figures cover purchases on the firm’s books, and some of these loans may run beyond age 67, the state pension age being phased in.
A longer mortgage spreads repayments over more time, lowering the monthly payment but increasing the total interest paid.
The figures reflect pressure on first-time buyers to make home-buying costs manageable.
The proposed Your First Home scheme may offer help with deposits, but its details have not yet been confirmed.
Under the former Help to Buy scheme, equity-loan fees began after five years and then increased each year.
The Budget on October 28 is due to set out the new scheme’s interest-free period and charges afterwards.
Nearly half of first-time buyers in Heron Financial’s analysis took out mortgages lasting 35 years or more.
The analysis covered first-time buyer purchases on the firm’s books over the 12 months to October 2026.
Longer terms can reduce monthly payments, but borrowers may pay more interest and continue repayments into retirement.
Industry figures differ on whether long terms are a necessary route to homeownership or a costly trade-off.
The UK government’s proposed Your First Home scheme is due to have its terms confirmed in the Budget on October 28.
- Who
- First-time buyers in Heron Financial’s analysis.
- What
- Almost half took out mortgages lasting 35 years or more.
- When
- In the 12 months to October 2026.
- Where
- Not stated.
- Why
- Longer terms can make monthly repayments more affordable.
Critics of long mortgage terms
Supporters of long mortgage terms
Affordability and cost
Critics of long mortgage terms
Matt Coulson said buyers stretch terms to lower monthly payments, but pay more interest and may borrow into retirement.
Supporters of long mortgage terms
Sara Palmer said long terms may make sense for families with no other path to homeownership.
Use of a 35-year term
Critics of long mortgage terms
Coulson described the trend as a sign of pressure on first-time buyers.
Supporters of long mortgage terms
Martin Rayner said his firm recommends a 35-year term to virtually all first-time buyers and said it keeps committed monthly payments low.
It's becoming the norm, with nearly half now taking terms of 35 years or more.
In this housing market, it's hard to imagine any other way for people to get on the ladder.
We recommend a 35-year term to virtually all first-time buyers.
Heron Financial’s analysis found that 48% of first-time buyer purchases on its books involved mortgages of 35 years or more.
The Mirror published its report on the research and long mortgage terms.
The Budget is due to confirm the length of the interest-free period and later charges for Your First Home.
- Share taking 35-year-plus mortgages
- 48%
- Analysis period
- 12 months to October 2026
- Gen H first-time buyers with 35-year-plus terms
- 37%
- Gen H first-time buyers with 30-year-plus terms
- 64%
- Your First Home Budget date
- October 28
Sources
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