By Sam Kirtikar, CEO, The Mortgage Broker. All data taken from The Mortgage Broker’s mortgage applications since May 1st 2025.
Through our work with thousands of borrowers each year, we see changes in the market as they emerge. In spring and summer 2025, we observed a measured shift in how customers balance loan-to-value (LTV), initial rate, and term length. It is a modest change, but it has clear implications for household finances.
Executive summary box (top):
- 75–89% extend terms;
- <50% shorten terms
- sub-10% deposits constrained
Across our clients, we are seeing one pattern stand out. In 2025, affordability isn’t just about the rate; it’s how you set the term for your LTV.
From May to October 2025, our data shows:
- 75–89% LTV borrowers most often extend their initial term to make today’s mortgages affordable, even as rates have edged down.
- Under 10% deposit (90–100% LTV) borrowers are typically doing what they can within tight criteria, pricing remains consistent here, so term flexibility is limited and choices are pragmatic.
- Lower-LTV clients (<50%) are going the other way, shortening their initial terms to reduce total interest paid – a more fortunate position of course.
This is a sensible, stability-first response to the market: structure the mortgage so the monthly payment works now, then keep options open to review when conditions improve.
Our Full List of Average Rates Year-to-Date. The earlier year rates, keeping the average slightly higher, but more recently we are seeing a drop off.
Bank Rate context (today, 20 Oct 2025): Bank Rate was cut to 4.0% in August and held at 4.0% in September; next decision 6 Nov 2025.
Public trackers show two and five-year fixes hovering around 4.9–5.0% mid-October; some sources show slightly lower Rightmove averages (4.5%). (Moneyweek).
| Loan Type | Loan Sub Type | Initial Interest Rate % |
| Purchase | Right to Buy | 5.09 |
| Purchase | Shared Ownership | 5.07 |
| Purchase | Buy to Let | 5.06 |
| Remortgage | Shared Equity | 4.79 |
| Remortgage | BTL – Product Transfer | 4.78 |
| Remortgage | Shared Ownership | 4.74 |
| Purchase | Standard | 4.71 |
| Purchase | Ported | 4.67 |
| Further Advance | Buy to Let | 4.60 |
| Remortgage | Buy to Let | 4.57 |
| Remortgage | Product Transfer (Split) | 4.49 |
| Remortgage | Let to Buy | 4.48 |
| Further Advance | Standard | 4.43 |
| Remortgage | Standard | 4.42 |
| Remortgage | Product Transfer | 4.38 |
| Purchase | New Build | 4.20 |
| Remortgage | BTL – Product Transfer (Split) | 3.89 |
Of course bad credit comes into play when accessing mortgage rates. No problem, you can speak to a bad credit mortgage expert today and see what rates you can get.
What our May–Oct 2025 client data shows (monthly averages):
- 75–89% LTV: terms up +0.72 years; rates down –0.24pp
- <50% LTV: terms down –1.0 year; rates down –0.07pp
- 90–100% LTV: pricing broadly flat, keeping a 0.65pp premium to <50% LTV in October
Why more borrowers are choosing longer terms – both in initial fixed rate, and in total mortgage length.
We’re seeing more clients opt for longer mortgage terms to bring monthly payments to a manageable level. With property prices still elevated and rates only easing gradually, stretching the term can make the difference between nearly affordable, to being sustainable… even though it increases the total interest paid over time.
Simple fact: a longer term lowers the monthly cost. It can help you keep headroom in the budget, but note, you will pay more interest overall.
The main drivers we have seen behind increasing mortgage terms:
- Affordability: Higher property prices and current rates mean many households need a lower monthly payment to pass affordability and feel comfortable.
- Lower monthly outgoings: Spreading the borrowing over more years reduces the payment immediately.
- Cost of living: Rising everyday costs have squeezed disposable income, so clients prioritise a payment that fits today’s budget.
- Flexibility: A longer term can create breathing space for savings, unexpected expenses, or other commitments.
What to consider before extending
- More interest over the life of the loan: A longer term generally means paying interest for longer.
- Paying past retirement: If the term runs into later life, make sure there’s clear, sustainable income to support it.
- Slower equity build-up: Lower payments can mean slower capital repayment, which affects how quickly you build equity.
Our approach: We model term vs. rate vs. payment side by side so you can see the trade-offs clearly; and set review points to shorten the term or refix when conditions allow.
Want to understand your affordability? Get Started below for a simple review with an expert mortgage adviser.
Simple takeaway: If you’re in the 75–89% LTV bracket, a longer initial term can be a legitimate affordability lever. If you’ve got strong equity, a shorter term can trim total interest. If your deposit is under 10%, it’s about working with current pricing and criteria: doing what’s possible today while planning reviews later.
The data (from our clients)
Average initial term by LTV for the Mortgage Broker clients show that as you increase the borrowing, the initial fixed rate rises. Average initial term: <50% LTV is 3.5 years; 10% deposit is 4.0 years.”. This is reflected in the rates below, which of course increase with the borrowing amount.
Average initial rate by LTV: May – October 2025.
| LTV | Rate |
| < 50% | 4.32% |
| 50 – 74% | 4.33% |
| 75 – 89% | 4.69% |
| 90%+ | 4.91% |
What this means for different buyers
- Under 10% deposit (90–100% LTV)
Reality check: pricing is firmer and criteria tighter.
What works: focus on clean credit file, realistic property shortlist, and term choices that keep payments steady: then re-optimise when you can.
- 75–89% LTV (mid-deposit)
Most common move: extend the initial term to defend monthly cashflow.
Why it helps: it can satisfy affordability today without over-stretching. Build in check-ins to shorten later if rates improve or income rises.
- <50% LTV (equity-rich remortgagers/movers)
Typical choice: shorter terms to reduce overall interest costs.
Why it’s smart: pricing is keener and buffers stronger; shortening can save thousands over the life of the loan.
Speak to a remortgage broker and compare rates.
Review your remortgageHow The Mortgage Broker can help
- 130+ lenders and 25,000+ products, including specialist lenders for complex income.
- Soft-search Mortgage in Principle (no impact on your credit file).
- Clear modelling of term vs. rate vs. payment for your LTV.
- Straightforward, no-nonsense advice from CeMAP-qualified, FCA-regulated advisers.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. For debt consolidation, be aware that securing short-term debts against your home may increase the overall cost in the long term.
Lenders can consider terms that run beyond planned retirement age where affordability into retirement is evidenced; this sits under the FCA’s responsible lending rules and current market commentary on longer terms among first-time buyers. This is of course subject to lender maximum age and evidenced post-retirement income
Several lenders/building societies set maximum ages (often up to 80–85) provided sustainable post-retirement income is clear (example intermediary policy).
Any recommendation will be based on your circumstances and affordability assessment under FCA responsible-lending rules.
FAQ’s: answers produced across the mortgage broker adviser team.
10 Minutes
