By Islam El-Sakka
Extended mortgage terms of 35 to 40 years, known as “marathon mortgages,” are becoming a practical reality for many homebuyers seeking lower monthly payments. Mortgage expert Connor Harle, senior mortgage expert at Mojo Mortgages, outlines five strategies to manage these lengthy loans and potentially pay them off sooner.
1. Work out a realistic budget
Before committing to a mortgage, borrowers should ensure monthly payments fit comfortably within their household budget. Harle advises testing affordability against potential interest rate increases of 1% or 2% and maintaining a financial buffer for variable expenses such as car maintenance or holidays.
2. Utilise overpayment allowances
Most lenders allow annual overpayments of up to 10% of the outstanding balance, with some permitting up to 20%. Directing surplus income, bonuses, or inheritance toward the mortgage capital can save thousands in interest and shorten the loan term.
3. Reduce or avoid high-interest debts
Large hire purchases or expensive car leases create constant monthly obligations that limit the ability to make mortgage overpayments. Harle notes that £300 a month on a hire purchase amounts to £36,000 over ten years, funds that could significantly reduce mortgage debt if redirected.
4. Adjust your mortgage term if your situation changes
Marathon mortgages are rarely static. As incomes rise or lump sums arrive from inheritance or pensions, borrowers can contact their lender to review the contract and potentially shorten the remaining term.
5. Plan for retirement early
Harle stresses the importance of entering retirement without a large mortgage burden. Without a plan — such as downsizing or using inheritance — borrowers in their 60s with 15 years left on their mortgage may face pressure to work beyond retirement age.
