What is the most suitable mortgage term for first-time buyers?

first time buyers choosing a mortgage term

Searching for your dream home as a first-time buyer is an exciting journey. Yes it takes time, but the feeling of finally being able to put all your hard-earned savings towards a place you can call your own is blissful. Along with the thrill, there can also be moments of stress and uncertainty as you make your way through the various legal checks and find a good mortgage deal.

As a first-time buyer, you might find yourself overwhelmed by the array of mortgage terms available. Each option has its own impact on your monthly repayments, the overall interest you’ll pay and your financial situation.

A mortgage term is the length of time you agree to pay back your mortgage when you first get it. In the UK, the most common first-time buyer mortgage terms are around 25 to 35 years, giving buyers the right balance of time and interest. However, they can be as little as 15 years or as long as 40.

We weren’t always taught these things at school, and it’s perfectly normal to have questions. That’s where Bliss Financial, first-time buyer mortgage brokers, come in. In this blog, we discuss the various mortgage terms, their benefits and drawbacks and how you can make the right decision for your future. Take a break from your endless scrolling, grab a cup of tea and let us help you find the best deal for your first home.

What mortgage terms are available to first-time buyers?

First-time buyers have several mortgage term options available, typically ranging from 15 to 40 years. Lenders mainly do this to cater to people’s financial needs, lifestyles, and plans.

Traditionally, a 25-year mortgage term was the standard option for many homebuyers. It struck the right balance between manageable mortgage repayments and a fairly reasonable overall interest cost.

But are they becoming a thing of the past?

With the surge in house prices and excessive borrowing costs, we are beginning to notice more and more people opting for longer-term mortgages. In fact, a recent article from The Guardian mentioned that over the past three years alone, over 1 million mortgages extending beyond the state pension age have been taken out.

With such a broad range of mortgage deals, you may wonder which one is right for you.

Each mortgage length has its own set of benefits and drawbacks. It’s wise to research them carefully and talk to a mortgage broker like Bliss Financial to discover the one that works best for you.

Take a look below at some of the benefits and drawbacks of different mortgage terms:

15-20 year mortgages

Pros Cons
Pay off your mortgage quickly  Higher monthly payments
Significantly less interest over the life of the loan Less financial flexibility
Build equity faster

25-30 year mortgages

Pros Cons
Lower monthly payments Higher interest rates
Makes homeownership more affordable More interest over the length of the loan compared to lower terms
More financial flexibility Repaying for a longer period

40 year mortgages

Pros Cons
Significantly lower monthly repayments Significantly higher interest over the full loan term compared to shorter mortgages
Access to higher loan amounts Take longer to build equity
Less common

What is the average length of a first-time buyer’s mortgage?

With an unpredictable mortgage market and less-than-appealing house prices, many first-time buyers are having to choose longer mortgages to borrow the funds they need. In the UK, the average length of a first-time buyer mortgage is 32 years.

What to consider when choosing a mortgage term

Choosing the most suitable mortgage term as a first-time buyer involves more than just picking a number of years. You should think about which term would best fit your current lifestyle, finances, and future plans.

How long do you plan to stay in your new home? Are you looking to recoup the money you invested or minimise your monthly payments?

Monthly repayments

Your monthly repayments are directly affected by the term length. Shorter mortgage terms mean you’ll have higher repayments but lower overall interest, while longer terms mean lower repayments with more accumulated interest.

With such an unpredictable housing market, longer-term mortgages may be a much more affordable option for first-time buyers, particularly to start with. A longer-term can help you get onto the property ladder more easily and affordably, and you could even make overpayments in the future to reduce the overall interest.

Interest rates

Your mortgage interest rate will vary depending on the term length. Shorter loans tend to have lower interest rates, but the monthly costs can be quite a hit to the wallet, while longer loans are the opposite.

Then, there are fixed rates and variable rates, which also affect the monthly payments. Fixed-rate mortgages offer more stability by locking you in at a specific rate for 2, 5, or even 10 years before transferring you to the lender’s standard variable rate. Variable-rate mortgages are a little more unpredictable but sometimes offer lower interest rates.

You shouldn’t just stop once you get your mortgage, though. You should always be considering your situation and looking to move on to better, more affordable options when the time is right.

Career stability

While it’s important to consider every aspect of the mortgage, you should also focus on your own financial situation. If you have a stable career with predictable income, you’ll likely feel more comfortable repaying your mortgage and may even be able to stretch to a higher payment for a shorter term. However, if you are self-employed or your income fluctuates, then lower payments might be more achievable for now.

Future plans

Are you planning to stay in your home for many years to come? Or is this new house a stepping stone to your forever home?

A shorter mortgage could help you build equity in your home faster. This means that when you come to sell the property, you’ll likely gain back more money after repaying the mortgage. But, if you’ve already found your dream home, then a longer mortgage lets you enjoy your home for years to come with the comfort of lower repayments.

Looking for mortgage advice? Contact Bliss Financial Solutions

At Bliss Financial, we work hard to make sure that buying your first home is a happy and stress-free experience. We put you at the heart of everything we do, aiming to make you feel comfortable and confident as we explore your mortgage options together.

We’ll be there every step of your mortgage journey, from finding the most suitable mortgage lender to ensuring you get the best rates.

When choosing a mortgage term, it’s also important to consider the type of mortgage that best suits your needs, such as a repayment or interest-only mortgage. We’ll be able to help you understand the different types of mortgages you can get as a first-time buyer and find the best one.

Please get in touch for a friendly chat about your mortgage requirements.

We specialise in first-time buyer mortgages, and we love it when our happy customers have nice things to say about us. Just take a look for yourself.

Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!

– Nathan C.

Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.

– Annise M.

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Amanda Marsden

Amanda is the founder and owner of Bliss Financial. She has been helping clients with their mortgage and insurance needs for over 15 years. Her passion is to fully explore the options open to them and ensures the process is easy with no stress. She also specialises in helping clients invest in buy to let property and landlords.

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Selected from a number online because they stated that they have experience working with people from the military. This was essential given how moving on assignment often can be a negative for many banks when it comes to lending. Amanda was excellent and the process was swift and easy. We had planned to visit face to face but the process was just as high quality over zoom and phone.
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Amanda is great, everything was explained clearly and always responsive to queries, would highly recommend.
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This is my second time remortgaging through Bliss and Amanda. The service provided has made my life stress free and Amanda was thorough with her research into what deal and term would be best for me based on economic uncertainty and where I am atthis point of my life.I'd not use any other mortgage broker ✨
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Amanda was extremely knowledgeable and helpful from minute one. I am very grateful to her for diligently working within a fairly tight timeframe to identify and provide me with the right product.Her communication throughout was prompt and well-received. I look forward to using her services again.
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Excellent service. Fully deserving of 5 stars. Nothing to fault. Great communication and everything went through in time with no issues. Would highly recommend Amanda Marsden.
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We have used Amanda for many years. She knows exactly what she is talking about and offers the best advice. I cant recommend Amanda enough if you're thinking of getting a mortgage or going through a Re-Mortgage. She reassured us throughout the whole process and was in touch every step of the way. Thank you Amanda, here's to many more years.
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Amanda was amazingly helpful and made the whole process hassle free. Even when I changed my mind a few times nothing was a problem and the end result was exactly what I was looking for. I would highly recommend Amanda and the team
Atha D.
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We used Amanda a few years ago for our first mortgage. She was an absolute hero for us. She sat us down and explained everything thoroughly putting all out worries at ease as first time buyers. We had issues with our chain which meant our mortgage offer lapsed and Amanda was there every step of the way right through to the day we moved in. Due to remortgage in the next year or so and I will always go back to Amanda.
Anya K.
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Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!
Nathan C.
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We specifically selected Bliss as financial advisors for our mortgage, as we'd read great reviews from other first time buyers. Amanda was so welcoming and helpful, introducing us to the whole process. We actually went to her thinking we were fish out of water, and wanting to but not expecting to but for a few years, just wanting to get our heads around it. However everything felt easy, quick and well explained and we were accepted for a within approx 2 months of starting our search. Amanda has been amazing throughout the entire process - even personalising the way she presented documents to us to suit our styles (me, needing to talk everything out and my partner more graphs and charts!). Evening appointments were organised to work around our work schedules. She was in constant communication with all stakeholders, chasing things up for us and since moving, also supporting with insurances. I'd highly recommend Bliss, and specifically Amanda for any financial advisory services however particularly first time buyers, as no question feels like a silly question. For future purchases, selling, and any other financial services - we will definitely return to Bliss.
Amber B.
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Great service. Professional, friendly and efficient. Amanda did a great job in advising me and then finding and securing the best mortgage to suit my situation
Ed T.
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Absolutely amazing service, couldn't have received any better. Very friendly and quick at replying to all enquiries. Very understanding of our circumstances which were difficult but still got us everything we needed for our new house. Thank you again Amanda, will be recommended you to everyone who needs a mortgage broker ☺️
Stacey G.
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Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.
Annise M.
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I came across Bliss financial solutions by google search when desperately trying to find a mortgage advisor who could do the impossible (secure a DiP quickly, that met my difficult short term self employment circumstances).Amanda from Bliss has been a pleasure to work with. The perfect balance of professional and friendly, incredibly organised and certainly not deterred by a challenge. I’m really grateful for the time and effort she put into my case to allow me to secure the house I wanted within the mandated timeframe. Thank you so much Amanda and Bliss for allowing us to get our new home 💜
heather U.
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I just want to say how amazing Amanda at Bliss financial is!!. My partner and I were looking at buying a shared ownership prooerty and everything started happening very quickly ... but Amanda just took over from the start and literally kept me at ease the whole way . Herprofessionalism throughout was second to none and helped with every aspect of the process. Thanks to Amanda we now have the most beautiful home and we will be forever grateful for everything she has done for us. I would 100% recommend Bliss Financial.
charlotte C.
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Switching mortgages has always been a frustrating and time consuming experience but using Bliss made the process seamless and most importantly stress free! They were excellent and I would highly recommend their services.
Neil G.
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Amanda has been totally invaluable through our first home buying journey. Always on hand to answer the hundreds of questions with her excellent knowledge and guidance.I would absolutely recommend Bliss Financial Services.
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We have been in our new house for nearly 2 months now all thanks to Bliss Financial Solutions, Amy was amazing sorting our new mortgage out and talking us through everything we needed to know. Very smooth process with good communications. Thank you very much. 🙂
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I would like to thank Bliss Financial Solutions for amazing, professional and swift responses during the process of my first home purchase.It has been an absolute pleasure each time I have met you and will 100% have no hesitation for contacting you again for future requirements and highly recommending you.
Paul K.
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We have recently used Amy at Bliss to help us get a mortgage. After having a stressful time at high street banks and other mortgage brokers, we contacted Amy for help. Amy was absolutely excellent and the work she does is outstanding. Amy went above and beyond and managed to find us a mortgage in a matter of days. Throughout the whole process Amy kept us up to date and managed the mortgage application seamlessly despite a stressful time with other companies. I would like to express my many thanks to Amy and the team at Bliss for being so excellent and thanks to them we now have the keys to our new home.
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My experience with Bliss Financial was excellent, everyone went above and beyond. Provided the best advice and more. Our mortgage was sort with out any stress. I will continue recommending to friends a family looking for mortgage advice.
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First class customer service, highly recommend Bliss Financial Solutions LTD to anyone that values a professional, efficient and personal approach. Being first time buyer my partner and I had very limited knowledge around mortgages and all things connected. Amanda and her team went above and beyond to ensure we understood everything and provided advice when we had any questions with immediate response. Bliss financial limited we thank-you kindly for making the whole mortgage process so easy, you took all the strain off us especially need due to the birth of our daughter 3 weeks ago you made the mortgage process easy and hassle free. I will definitely be a customer for life and if there is anyway I can share your company’s profile on social media please let me know as I would love to recommend your service to others.Many thanks Melissa Hodgson, Andrew and Eloise - three very happy customers 😊
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Amy and the team were absolutely amazing! Nothing was too big. We didn't really know much about the process and Amy explained everything so we fully understood! We couldn't have done it without the team 100% would recommend to anyone! Thank you all so much ❤️
Rebekah F.
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We used Bliss to re morgage our property. Amy was absolutely fantastic, made everything feel really easy, she was clear in all her explanations, open and honest with setting expectations, and really knowledgeable. The whole process was really smooth. We also discussed life insurance which was something of a priority giving we had just had a little boy recently. Amazing service. Would highly recommend. We will definitely be using again for any future mortgage or insurance needs.
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Excellent service, they really came to the rescue after being messed about by our current lender, amazing absolutely amazing. Just wish we went to them sooner would have saved a big headache 😃
Michael C.
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Efficient and friendly. The team helped source the most appropriate mortgage for us at a very busy and pressured time for interest rates and timeframes. They were very helpful in expediting the completion when our solicitors were holding up proceedings. The little gift afterwards was much appreciated also. Would recommend.
Kirsty T.
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Bliss Financials was a vital part of my journey to home ownership in the UK. They always gave personalized yet professional advice and were always accessible and responsive all through the process. They were very thorough, transparent and client centered; offered and discussed all the available options to enable me make an informed choice. I would totally and wholeheartedly recommend their services and I am very grateful to Amy who handled most of the process as well as Amanda and Sophie. Great team/firm!
Nwosa C.
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I would like to praise the excellent service of the Bliss Financial Solutions LTD.I have a brilliant experience with this company. I was buying a house for the first time and Bliss Financial advised me on every step of the process (mortgage, insurance), offering me suitable options that I could choose from. I always got great offers and still was in control.All members of the team (Amy, Sophie, Amanda) are brilliant, very professional, friendly and responsive.I am very grateful to Amy (my consultant) as she did help me very much throughout the process, nothing was a problem,I received responses straight away and she also prompted other parties to act swiftly (lender, insurance companies, solicitor, etc.).If I need mortgage or insurance in future, I will definitely ask Bliss Financial for help again.
Michal P.
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I am now on my second mortgage which was arranged using Bliss. What an outstanding service. From start to finish the Bliss team were great in answering queries that I had. They even pushed to get me an extension to my offer seeing me secure a great rate before the recent rises. This certainly helped me secure my dream home. I would recommend Bliss to anyone who is after a professional and personable mortgage advisor.
Dean
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Amanda worked extremely hard and was really efficient is securing a fixed deal for me at a time when rates were being removed across the board. I would recommend them to anyone.
Andrew M.
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Excellent from start to finish. Every decision and option were made clear to us about the implications and any questions we had were answered in a timely manner, making remortgaging easier than I imagined it would be. Thank you to Bliss Financial Solutions for excellent service and attention to personal details that really made us feel like our priorities were put first. We will use again at our next remortgage and would recommend to anyone.
Melissa B.
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Excellent company, fast and responsive and a professional outfitI appreciate Amy’s swift advice on a deal to secure a good rate 12hrs before the rate changed
Adam L.
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What a fantastic service. I contacted Amanda via a friend recommendation. She was friendly and helpful. She passed me to Amy who was my advisor for the whole process.As a first time buyer, I was like a rabbit in the headlights. But Amy reassured me and made the whole thing a breeze, with regular contact and updates along the way.Thank you to you all.Highly recommend 😁See you when it's time to remortgage 😉
Steven R.
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We have used Bliss/Amanda for a number of mortgages now and the service has always been second to none!We have had complicated financial situations that the Bliss team have used their extensive knowledge to support and ensure we receive the best product for us.We always recommend Bliss to all our friends and family!Thank you to Amanda, Amy and Sophie
Samantha B.
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The staff are amazing and very helpful throughout the whole process, the rates are very competitive and the after sales service is second to none, I would highly recommend Bliss Financial to anyone.MarkAspire Property Rentals
Mark L.
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Any Lyons found us an excellent mortgage deal and then helped us through a long complex legal process regarding the house. She was there for us all the way through keeping us informed and chasing up when there were delays, Thank you Amy and her team.
Ken W.
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Amy has been amazing from the start of our process as first time buyers until completion. We had a few delays along the way due to waiting on a new build but Any was there to guide us through every step of the way to help us rearrange another mortgage and kept us regularly updated on the process. I have already recommended her to friends and family and wouldn’t hesitate to use her again when we remortgage.
Melissa N.
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Really happy with the service from Amy and Bliss Financial Solutions - Amy made sure everything was as straight forward as possible, was super communicative and really easy to deal with. Would not hesitate to recommend them.
Rachael G.
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Amanda was very helpful. Gave advice over a number of options for my situation. Many other companies didn't even bother calling me back. Will definitely go back to Bliss again in the future.
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