Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Majority of Under-30 Homeowners Take Out 30-40 Year Mortgages

Around two-thirds of homeowners under the age of 30 have mortgage terms between 30 and 40 years, according to analysis by mortgage overpayment app Sprive. The study, which reviewed over 190,000 cases, found that longer mortgage terms are increasingly common among younger adults.

The analysis revealed that only 6% of people aged 40-49 had mortgages up to 40 years, while 42% of homeowners aged 30-39 had mortgage terms of 30-40 years. Sprive noted that many younger homeowners do not expect to be mortgage-free until they are 59 years old.

Sprive highlighted that making regular overpayments could help reduce the length of a mortgage and the total interest paid. For example, with an average mortgage of £202,000 at a rate of 4.14%, overpaying by £50 per month could allow a homeowner to be mortgage-free nearly two years earlier and save more than £10,700 in interest. Increasing overpayments to £100 per month could save over £19,700 in interest and shorten the mortgage term by more than three-and-a-half years.

Recent data from the Financial Conduct Authority (FCA) showed that in 2025, 72% of new mortgages sold were on terms longer than 20 years. Around a third of new mortgage transactions last year were on terms of 30 years or longer.

For UK letting agents and inventory clerks, these trends may influence the types of tenants and buyers entering the market, as well as the length of time younger homeowners remain in properties before becoming mortgage-free.