Exploring 35 and 40-year mortgage terms with Perenna

Explore the benefits of 35 and 40-year mortgages with Perenna 1 December 2023 by Abi Walker

Embracing longer terms 

Taking the first step on to the property ladder can often be hard for first-time buyers. Many people now choose mortgages lasting 35 years or more. This change shows the need for new solutions to make home buying easier, especially for those starting on the property ladder. 

Financial impact explained 

When you extend the time to repay your mortgage, you can pay less each month. This is shown below. If you borrow £200,000 with an interest rate of 5.5%: 

Repayment chart for longer term mortgages

[source – https://www.landc.co.uk/calculators/how-much-will-my-mortgage-cost/] 

 This means if you choose a 40-year term instead of a 25-year term you pay £196 less every month. Or £2,352 less each year.  

But, it’s important to know that the total interest you pay increases by £126,687. 

Borrowing potential 

Extending your mortgage period may cut monthly payments, but it doesn’t automatically boost how much you can borrow. If your fixed rate is set for a short amount of time, lenders aren’t sure of the rate you’ll be paying in the future. So, they need to stress test to work out how much customers can afford to borrow. You can learn more about this here. 

Our approach 

Our mortgage is unique. It fixes your interest rate for the full term. This means you’ll never have to worry about rates rising. Plus, our mortgage can fit around your life. You can take your mortgage with you when you move home. And after five years, if you’d like to change your mortgage deal – no problem. You can move to another lender or product without charge.  

Could you borrow more with Perenna? 

We will also lend up to six times a borrowers’ income, subject to criteria. This could help many first-time buyers who struggle with affordability. 

So why not use our calculator to find out how much you may be able to borrow? It’s completely confidential, does not affect your credit score and should only take a few minutes. 



You could lose your home if you don’t keep up your mortgage repayments.