Yes, you can change the terms of your mortgage. You could shorten the term to be even closer to being mortgage free (at the cost of higher monthly payments). Or, you can extend the term and increase the overall cost of the mortgage. Doing this will lower your monthly payments however, giving you more money to spend each month.
“The great thing about your mortgage term is that it's not set in stone. Your mortgage should fit your life, not the other way round. A small change can make a big difference to your monthly payments or the interest you pay. We love showing people the numbers, so they can pick what feels right for them."
Rachel Geddes
Strategic Lender Relationship Director
Can I change my mortgage term?
Yes, in most cases you can. You can make your mortgage term longer to bring your monthly payments down. Or you can make it shorter to clear your mortgage sooner and pay less interest.
Your lender will need to agree, and they'll run a few checks first.
What is a mortgage term?
Your mortgage term length is the time that you agree to repay your mortgage over – it’s usually 25, 30, 35 or even 40 years.
It's easy to mix this up with your deal length. Your deal, for example, might be a two or five year fixed rate mortgage. Your term is the whole journey, and it can cover many fixed deals along the way.
Think of it like this:
Mortgage term: the total repayment period
Mortgage deal: the interest rate you're on for a set number of years
Your term affects:
Your monthly payments
How much interest you pay overall
How quickly you repay your mortgage
Did you know? According to UK Finance, the average mortgage term for first-time buyers is now 31 years as of March 2025, compared with 28 years a decade earlier.
How changing your term affects what you pay
Quick rule of thumb. In general, if you make your mortgage term longer, it will bring your monthly payments down but you’ll pay more interest overall. If you make it shorter you'll clear your mortgage sooner and pay less interest overall, but the monthly payments will go up.
How big a difference changing the length of the term makes depends on how much you owe and your interest rate.
Calculators at the ready! Let's work through the maths with this example of a £200,000 repayment mortgage at 4.5%:
Term | Monthly payment | Total interest paid |
20 years | about £1,266 | about £103,600 |
25 years | about £1,112 | about £133,600 |
30 years | about £1,014 | about £164,800 |
Basically, changing your term is a trade-off:
Longer term = lower monthly payments but higher overall cost
Shorter term = higher monthly payments but long-term savings
As the figures show, if you extend your term from 25 to 30 years, you'd pay £98 less each month. But overall, you'd pay about £31,200 more in interest.
If you went the other way and went from 25 years to 20 years, your payments would rise by about £154 a month. In return, you'd save around £30,000 in interest. And here's a neat bonus – you'd also be mortgage-free five years earlier.
As you can see, your mortgage term can really change how much you pay now versus paying later.
These figures are just examples. Your own numbers will depend on your balance and rate. Try our mortgage repayment calculator to see what different terms would look like for you.
Why you might extend your mortgage term
Lowering your monthly payments
A longer term spreads what you owe over more years. That means smaller payments each month. So, if your budget feels stretched, that breathing space can make a real difference to your bank balance and quality of life.
Getting through a squeeze on your finances
Life changes. Maybe your bills have gone up due to the increased cost of living, your income has dipped or (more positively) your family has grown. Extending your term can give you room to cope with short-term money worries.
The bit to weigh up: paying more interest overall
You'll be borrowing for longer, so you'll pay more interest in total. Some people extend for a while, then shorten the term again when money feels easier. Many lenders let you overpay to make up the difference too, so you're not locked in.
Why you might shorten your mortgage term
Paying less interest
The faster you repay, the less interest you build up. A shorter term can save you tens of thousands of pounds.
Mortgage-free sooner
Imagine owning your home outright five years earlier. For many people, that's a their dream. It can free up money for retirement, travel or helping your children. Or you can just kick-back, pop the champagne and think “this is all mine”.
The bit to weigh up: higher monthly payments
Shorter terms mean bigger payments. Check you'd still be comfortable if your costs went up or your income dropped. A mortgage adviser can help you find the right balance.
How to change your mortgage term
There are three main ways to do this. The right one ultimately depends on your lender, your deal and what you want to achieve. These things will naturally change over time, but that’s okay.
With your current lender
Wondering how to extend your mortgage term? Start by asking your lender. This is often done as a product transfer, where you move to a new deal with the same lender. Some lenders will also be happy to change the term mid-deal, but it’s always best to give them a call and ask.
A product transfer can be quick and simple. But it only shows you one lender's deals. It's worth comparing that against the wider market before you say yes.
By remortgaging to a new lender
If you're shopping around for a better rate, you can change your term at the same time. Remortgaging gives you more flexibility, and you might find a lender who offers terms that suit your plans better.
This can be a good option if:
You want a shorter term and a competitive rate
You want a longer term but your current lender won't allow it
You're looking for a lender with more flexible overpayment rules
By overpaying (and overpayment limits)
By making a lump sum payment, you can reduce the cost of your monthly repayments.
Most lenders let you overpay up to 10% of your balance per year without fees. Go over that limit, and you may face an early repayment charge (ERC).
By making overpayments, the length of the mortgage term remains the same, but the monthly repayments are lower. That’s because there is less to pay off overall.
What lenders will look at
Affordability checks
If you're shortening your term, your monthly payments will rise, so lenders need to be confident you can afford them. They'll look at your income, spending, debts and financial commitments.
If you're extending your term, affordability is usually easier, but lenders still need to make sure the new term is sensible. They’d like their money back at some point, after all.
Your age at the end of the term
Lenders set a mortgage age limit for the end of your term. It's often between 70 and 75, though some go higher. This matters a lot if you're nearing retirement.
Say you're 55 and want to extend to 25 years. That would take you to 80, which could be too far for some lenders. You might need to keep your term shorter, or show how you'd keep up your payments in retirement.
If you're a little later on in life, think about the risks as well as the benefits. A longer term means debt that carries on into retirement. When your income drops, payments could feel harder. Some later-life borrowers choose a shorter term. Others look at options like retirement interest-only mortgages. An adviser can talk you through what suits you.
Early repayment charges and fees
If you change your term while you're still in a fixed deal, you might have to pay an early repayment charge. These can be a percentage of what you owe, so they can get very expensive, very quickly.
There may also be fees for arranging a new deal, valuing your home or legal work. Add these up before you decide. Sometimes it's worth just waiting until your deal ends, so you can change your term without a charge.
How a Mab adviser can help
Not sure which route is right for you? That's what we're here for. Our advisers aren't just mortgage know-it-alls and maths boffins. We can compare deals from across the market and show you what different terms would mean for your monthly payments. They'll also flag any costs before you commit, so there are no nasty surprises.
Ready to chat? Our advisers are ready to call you back today. The first chat costs nothing and is totally free of obligation.
Something to bear in mind...
Frequently asked questions
Often, yes. Many lenders will let you extend your term, either mid-deal or when you switch to a new product. They'll usually want to check whether you can afford it, as well as your age at the end of the term.
Yes. You can ask your lender to shorten it, or remortgage to a shorter term. You could also overpay and clear your mortgage sooner without formally changing anything.
Not necessarily, but it can. Some lenders price their deals differently depending on the term. You might also be offered a new rate if you move to a new product. Compare your options before you decide.
Shortening is cheaper overall, because you pay less interest. Extending costs more in total but gives you lower payments each month. The right choice depends on what matters most to you right now and long-term.
There’s no point in having a shorter term if you’re going to be living on the breadline every month. Likewise, if you’ve got a good amount of disposable income left over, putting some of that on the mortgage can get you one step closer to being mortgage-free.
Asking about your options usually won't affect your credit score. However, if you go ahead with a new mortgage, the lender will run a credit check, which is normal. A broker can help you choose lenders carefully to avoid unnecessary applications.