Life can change — careers evolve, families grow, and financial circumstances shift.
So, it’s no surprise that many homeowners eventually ask:
“Can I change the term of my mortgage?”
The short answer is yes, you can. However, doing so involves important financial considerations that can affect both your monthly repayments and your overall cost of borrowing.
This guide from MillionPlus Mortgage Experts explains how changing your mortgage term works, the pros and cons of extending or shortening it, and the options available to UK borrowers in 2025.
What Does ‘Mortgage Term’ Mean?
A mortgage term is the length of time over which you agree to repay your mortgage loan.
In the UK, most homeowners have terms between 25 and 35 years, though shorter (15–20 years) and longer (up to 40 years) options are increasingly available — especially for first-time buyers and families balancing childcare costs.
- Shorter terms mean higher monthly repayments but significantly lower total interest.
- Longer terms reduce your monthly payments but increase total interest over time.
Choosing the right term depends on your financial goals — whether that’s paying off debt quickly, improving cash flow, or maintaining flexibility for life’s changing needs.
Reasons You May Want to Extend Your Mortgage Term
Extending your mortgage term can be an effective way to lower your monthly payments and ease financial pressure, especially during challenging periods.
Lower Monthly Payments
The most common reason to extend a mortgage term is to make monthly payments more manageable.
If your household budget is stretched due to rising living costs, medical bills, or education expenses, extending your term provides breathing room.
However, keep in mind that while monthly payments decrease, the total amount of interest paid over time will be higher.
Improve Affordability
Extending your term can also help make homeownership more affordable.
For example, if you’re a first-time buyer or a family looking to balance affordability with long-term security can explore our family mortgage guide to understand how mortgage term choices impact budgeting, children’s education, and future planning.
Manage Cash Flow During Transitions
If your income temporarily drops — such as during maternity leave, career change, or part-time employment — extending your term can help you stay on track with payments while keeping financial stability.
Reasons You May Want to Shorten Your Mortgage Term
Shortening your term is a smart strategy if your income has increased or you’re focused on building long-term financial security.
Save on Interest
By reducing your mortgage term, you’ll pay less interest overall, often saving tens of thousands of pounds across the loan’s life.
Build Equity Faster
With higher monthly payments, you’ll own more of your home sooner — ideal if you’re considering remortgaging or downsizing later.
Equity growth also improves your loan-to-value (LTV) ratio, helping you secure better mortgage deals in the future.
Become Debt-Free Sooner
A shorter mortgage term lets you pay off your loan faster, achieving financial independence earlier in life — giving you flexibility to focus on savings, investments, or retirement planning.
How to Extend the Term of Your Mortgage
Changing your term is possible, but the method depends on your lender’s policies and your financial profile.
Option 1: Remortgage to a Longer Term
The most common approach is to remortgage with a new lender for a longer term.
This means taking out a fresh mortgage to replace your existing one — often at a new interest rate and repayment structure.
Advantages:
- May qualify for lower fixed-rate offers.
- Potentially consolidate other debts for easier management.
- Flexibility to choose new terms and repayment types.
Disadvantages:
- Possible arrangement fees and early repayment charges.
- Extending your term increases overall interest paid.
💡 Tip: Use our guide on remortgaging fees and costs for families to understand the expenses before you apply.
Option 2: Product Transfer With Your Current Lender
Some lenders allow you to change your mortgage term without remortgaging.
This is known as a product transfer, where you stay with the same lender but adjust your repayment period.
Before making any decision, it’s wise to review the remortgaging fees and costs involved, as some lenders may charge arrangement or early repayment fees that affect your savings.
How to Shorten Your Mortgage Term
If you’re financially comfortable and want to clear your mortgage faster, there are several ways to do it:
Option 1: Increase Monthly Payments
Overpaying your mortgage is the simplest way to shorten your term. Homeowners currently on Standard Variable Rate mortgages may benefit most from overpayments, as these rates tend to carry higher interest compared to fixed-rate deals.
Even small extra payments each month can save thousands in interest and reduce your term by several years.
⚠️ Check if your lender applies early repayment charges (ERCs) before making extra payments.
Option 2: Remortgage to a Shorter Term
If your financial circumstances have improved, you may choose to remortgage to a shorter term — for example, moving from a 30-year to a 20-year mortgage.
This approach can significantly reduce interest costs and boost equity but requires affordability checks and potential legal fees.
Should You Change Your Mortgage Term?
Changing your mortgage term can be a powerful financial tool — but it must align with your broader goals.
Here’s what to consider before making a decision:
- Do you have an emergency fund to handle higher payments?
- Are you planning to move or remortgage soon?
- How does the change affect your long-term affordability and retirement planning?
If you’re approaching retirement age or have an existing long-term loan, exploring mortgage options for older buyers can reveal flexible repayment plans suited to later life.
Speaking with a qualified mortgage broker or financial adviser can help you find the right balance between affordability today and financial freedom tomorrow.
Final Thoughts
Whether you’re looking to reduce payments or pay off your home sooner, adjusting your mortgage term is an effective way to adapt to life’s evolving needs.
However, every change has long-term implications, so always weigh the costs, benefits, and timing carefully.
For older homeowners looking for flexibility without extending their loan term, exploring equity release and lifetime mortgage options can provide access to funds while remaining in your home.
