Mortgage terms

When you take out a mortgage your mortgage lender or broker will discuss with you how long you would like the mortgage to run. This period is known as the mortgage term and will affect the amount you pay back each month.

The general rule is that the shorter the mortgage term, the higher your monthly mortgage repayment will be, although the total amount you'll repay (including the amount you borrowed) will be less. With a longer term, you may pay less each month but the repayment period will be longer, meaning your overall mortgage cost will be greater.

However, many people tend to go for longer mortgage terms of between 20 and 25 years as this helps spread the large cost of the loan and makes monthly payments more manageable.

Your lender should discuss these options with you and recommend a term that suits you and fits your budget.

Details on different mortgage terms will be included in the Keyfacts 'about this mortgage' document (also known as a Keyfacts illustration or KFI), which your mortgage provider should provide to you when taking out a mortgage.

You can also use our mortgage calculator to see how different mortgage terms will affect your monthly payment and overall mortgage cost.