The term of a mortgage can be anything from five years to 30 years, although 25 years is the most usual term chosen at the outset.
Assuming your loan is on a straightforward repayment mortgage basis, the longer the term, the smaller your monthly repayments will be. On the other hand, the longer the mortgage term, the more interest is charged over time and therefore the greater the total cost of the loan overall.
Lenders normally expect a mortgage to have been paid off by the time you retire, as you will no longer be earning an income sufficient to make the payments. If your mortgage term does extend beyond your retirement, it is your responsibility to ensure you have arrangements in place that allow you to continue to make your monthly payments. Your mortgage should normally be repaid by the time you are 70.
