Can You Change Your Mortgage Term When You Remortgage?
This guide is for general information only and does not provide financial advice. Check your lender’s terms before overpaying, as early repayment charges may apply. Your home may be repossessed if you do not keep up repayments on your mortgage.
When you take a new mortgage to replace your current one, the new mortgage has its own term, so you may be able to choose a shorter or longer term than the one you have left. Lenders set their own limits, so check the lender’s rules, and what you are offered depends on your circumstances. This page shows how the term changes the numbers in one example.
A worked example
Take a £200,000 balance at an example 4.5%. The table shows the monthly payment and the estimated total interest for a range of terms, assuming the rate is the same for each term. On real mortgages the rate and fees can differ by term.
| Term | Monthly payment | Estimated total interest |
|---|---|---|
| 15 years | £1,529.99 | £75,397 |
| 20 years | £1,265.30 | £103,672 |
| 25 years | £1,111.66 | £133,501 |
| 30 years | £1,013.37 | £164,814 |
| 35 years | £946.51 | £197,538 |
In this example, at the same rate, a shorter term has a higher required payment and less interest overall, and a longer term lowers the payment and increases the interest overall. Some people keep a longer term and overpay when they can, so the required payment stays lower. Overpaying is subject to your lender’s allowance and any early repayment charge, and the saving cannot be promised. See a shorter term or overpaying.
Questions worth asking
- What terms does the lender offer, and what rules does it apply? Lenders set their own rules.
- Can you afford the payment on a shorter term if your circumstances change?
- What are the fees for changing, and would there be an early repayment charge on your current deal? See remortgage fees and the break-even point.
You can try other terms in the free mortgage overpayment calculator.
Figures are estimates from this site’s calculator. They assume a repayment mortgage, a rate that stays the same for the whole term and no fees or early repayment charges, and they are illustrations, not forecasts. Try your own figures in the free mortgage overpayment calculator.
If you are unsure whether overpaying suits you, consider speaking to a regulated mortgage adviser.
Questions people ask
Can I shorten my term when I remortgage?
It depends on the lender and your circumstances, including affordability. Some lenders may offer a shorter term. Ask the lender or a regulated mortgage adviser.
Can I extend my term to lower my payment?
It depends on the lender. At the same rate a longer term means more interest overall, as the table shows, but the rate and fees can differ by term. Lenders set their own limits, so check the lender’s rules.
Can I change my term without remortgaging?
It depends on your lender and mortgage. Check your mortgage terms or ask your lender.
Related guides
how mortgage overpayments work, whether you pay interest on overpayments, what happens if you pay more each month, how many extra payments a year. See also how to overpay your mortgage, should I overpay my mortgage? and how much should I overpay?