30 Year Mortgages: Getting onto the Property Ladder

Getting onto the property ladder has never been easy, and for today’s first-time buyers, it often means committing to a mortgage that lasts over three decades. According to UK Finance, the average mortgage term for first-time buyers is now 31 years, up from 28 years just a decade ago.

As house prices continue to climb and affordability remains tight, many buyers are stretching their loan terms to make monthly payments more manageable.

Even with recent drops in mortgage rates, terms aren’t getting shorter with rising property prices largely cancelling out any benefit from lower interest rates. For many, the only way to get a foot on the ladder is to spread repayments over a longer period, even if that means making payments into retirement. In fact, around 40% of new mortgages now extend past state pension age.

While this might help in the short term, it’s important to think long-term too. Longer mortgages can mean paying more interest overall and potentially having repayments well into your 60s or beyond. This makes it more important to seek expert advice to ensure you’re choosing the right mortgage for your circumstances, and to have a realistic plan in place for the years ahead.

There is, however, some good news on the horizon. Chancellor Rachel Reeves has announced that £39 billion will be invested in building social and affordable housing in England between 2026 and 2036, an average of £3.9 billion a year.

While it’s too early to know the full impact this will have on the housing market, it’s a positive step that could help ease the pressure for future buyers.

If you’re thinking about buying your first home, or supporting someone who is, now’s the time to get in touch.

Explore your options, find the right deal and make informed decisions to get you onto the property ladder.

If you’d like to discuss the options available to you, then please contact us today.